Almost everyone is acquainted with the term income tax raid. It is also known as an assessment raid. This is a common activity performed by the Income Tax Department to identify and seize and control unlawful amounts of money. Raid is officially known as search and survey operations. The main reason behind this operation is to get rid of any corruption. The Indian government is providing the best legal action against all kinds of corruption, and that is why the Income Tax Department is performing the operation.
In India, previously, a lot of cases related to black money took place. In the future, to resist this kind of incident, the Indian government, along with the income tax department, are coming forward. The Income Tax Department (ITD) is mainly appointed to collect taxes and enforce all kinds of rules and policies regarding tax. All tax collections are directly reported to the Ministry of Finance’s Department of Revenue by the ITD.
The ITD is operated by the Central Board of Direct Taxes (CBDT). Previously, the Income Tax Department has made two major rules: the Black Money Act of 2015 and the Prohibition Act of 1988. So, basically, the income tax raid done by the ITD is a pathway to create a corruption-free country.
To learn more about the Income Tax raid by the ITD, go through the article.
Income tax raid: Why is it carried out?
There have been various reports that came to the public news that some unlawful authorities of individuals had collected huge amounts of money without any authorisation, and they did not have any legal proof related to their assets. These kinds of assets or money are known as unaccounted money or black money, which are hidden from tax officials.
Black money can cause a huge loss in the overall national economy. When this kind of news is published, assets like money, jewellery, or other pricey wealth will be checked by the Income Tax Department.
Income tax raid: When does the income tax department go for a raid?
To combat all kinds of black money or unexplained money, raids are the only option for the Income Tax Department. Usually, there are a few points that are visited while going for a raid operation.
- Proper information from the Income Tax Department’s Intelligence Wing regarding black money or tax evasion.
- Same tax evasion information from government authorities.
- Manipulation in bank accounts.
- Illegal investment in gold, share market, real estate, etc.
- Information regarding disproportionate spending of a potential taxpayer.
Income tax raid: What can be done by the authorised officer while conducting a raid operation?
When the raid operation takes place, the leading officer will have a lot of power.
- They can go to any building or construction. They can go to any vehicle or room where they may find various unauthorised properties.
- The officer can break any lock. It can be a locker, almirah, door, etc., to undergo raid operation by the ITD.
- The officer can search each and every one of the places where the raid is happening.
- The officer can access all passbooks, bank account details, etc.
- Officers can mark any book, wall, or document.
- They can take duplicate copies of documents.
- Also, the officer can create a detailed list of the total amount of money, jewellery, real estate properties, or any kind of assets.
Income tax raid: What can not be taken away or seized by the ITD officer?
Though the officer from the ITD can have huge power, in some cases, they can not seize some things.
- Explained or legal cash
- Assets recorded in the books
- Assets that are known by the Income Tax Department
- A company’s stock
- Up to 500 gm of gold for married women
- Up to 250 gm of gold for unmarried women
- Up to 100 gm of gold for male members
Income tax raid: Who can give the order for the raid?
- Principal Director General
- Additional Commissioner
- Joint Director
- Joint Commissioner
- Deputy Director
- Income-tax Officer
Income tax raid: Rights of a person while the raid is ongoing
- Women can say no to personal searches without a ladies’ constable.
- One can call a doctor in case of a medical emergency.
- After checking on the children, they can go to school.
- One can have a copy of the inventory created by the ITD officers.
- One can demand the statement against him.
- Lastly, one can check the seized account books.
FAQs
What is the main motto of income tax raids?
In an income tax raid, an unlawful amount of money is seized by the Income Tax Department.
Who can give permission for an income tax raid?
Tax authorities can conduct an income tax raid.
Where does the raided money go?
The money collected from a raid will be directly deposited into the central government treasury.
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