The Income Tax department will tightened noose on individuals who are getting high returns on their fixed deposits investments but are not paying the taxes.
The Income Tax department will tightened noose on individuals who are getting high returns on their fixed deposits investments but are not paying the taxes.
The IT department would be watching closely over those with interest income of Rs 5 lakh or more, including senior citizens, according to a report published in the Times of India.
A fixed deposit (FD) is a financial instrument provided by banks which provides investors with a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account.
The IT department would scan the information of various agencies (such as banks) on taxpayers as well as tax deductions on FDs, senior officers in the Central Board of Direct Taxes (CBDT) told TOI.
Lately, there has been a tremendous rise in the earnings based on income from interests received on large fixed deposits as it is considered to be a more durable source of income.
Quoting sources, the report further mentioned that the tax payers who fall under the 10% bracket pay their taxes. However, individuals falling in the 30% category often do not bother to pay the required taxes.
"Our focus is on the large evaders. There is no point chasing the smaller persons who do not yield much returns," a top-ranking officer told the newspaper.
The move would aim the Government's purpose of widen the tax base.
The tax department is eyeing on a target of raising Rs 9.8 lakh crore from direct taxes in the ongoing financial year.
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