Slap higher tax rate on fraudulent returns: CBDT

The Central Board of Direct Taxes has asked the Income tax Officers to conduct detailed scrutiny on cases where a taxpayer has filed a revised income tax return (ITR) post demonetisation and directed them to slap “higher tax rate” in instances where black money is detected.

The CBDT has issued a 2 page instruction to all regional chiefs of the I-T department.  “Unaccounted income so assessed in scrutiny assessment is liable to be taxed at a higher rate without any set off losses, expenses etc. under section 115BBE (treatment of tax credits) of the I-T Act,” the CBDT instructions said.