GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

LOK SABHA

UNSTARRED QUESTION NO. 2242

TO BE ANSWERED ON MONDAY, 02^nd AUGUST, 2021

SRAVANA 11, 1943 (SAKA)

HIGH VALUE DEPOSITS

2242: SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

Will the Minister of FINANCE be pleased to state:

(a)whether the Government is investigating heavy deposits made during 50 days period of demonetisation;

1. if so, the details thereof;
2. whether an investigation is also being done on financial institutions against their high value deposits; and
3. if so, the details thereof along with the status of investigation so far?

ANSWER

MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) & (b): During demonetisation, large cash was deposited in bank accounts, and it became possible to track the owners of cash. The Income Tax Department (ITD) took a number of prompt actions on those found to be involved in misuse of the scheme of demonetisation. These actions, inter-alia, included the following:

• The Income Tax Department conducted searches in 900 groups during the period November 2016 to March, 2017 leading to seizure of Rs. 900 crores, including cash of Rs. 636 crores and admission of undisclosed income of Rs.7961 crores. During the same period, 8239 surveys were conducted leading to detection of undisclosed income of Rs.6745 crores.
• The cash deposit data was analyzed to identify those persons whose cash transactions did not appear to be in line with their profile. Regular emails and SMS were sent to them for submitting their response online. This exercise promoted voluntary compliance.
• Further, electronic campaign was initiated in case of non-filers depositing cash between Rs 5-10 lakh. Further, 3.04 lakh persons who had deposited cash of Rs. 10 lakh or more but had not filed their return of income till due date of filing returns were identified. Overall, Self-Assessment Tax of more than Rs. 13,000 crores was paid by targeted non-filers.
• In respect of cases where high deposits were made post demonetisation and the corresponding returns of income were not filed, notices u/s 142 (1) of Income Tax Act, 1961 were issued for filing of returns. Assessment orders have been passed making requisite additions in these cases.
• Further, in cases where the Returns of Income were filed by the depositors, the income tax returns and demonetization data were analyzed under Computer Assisted Scrutiny Selection (CASS) and cases were selected for scrutiny on account of various scenarios related to demonetization. After scrutiny, assessment orders have been passed in large number of cases wherein substantial additions have been made.
• In suitable cases, penalties have also been levied.
• It may also be mentioned that because of sustained non-intrusive campaign by the Income Tax Department post demonetization, during F.Y. 2017-18, the net collection of direct taxes increased by 18% at Rs. 10.03 lakh crore as compared to previous year. This was the highest growth in preceding seven F.Y.s. There was also exceptional growth in Personal Advance Tax of 23.4% and Personal Self-Assessment Tax of 29.9% in F.Y. 2017-18 in comparison to F.Y. 2016-17.

Further, Directorate of Enforcement (ED) has registered 9 cases under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA, 2002) and 5 cases under the Foreign Exchange Management Act, 1999 (FEMA, 1999) with respect to heavy deposits made during the period of demonetisation.

(c) & (d): Directorate of Enforcement (ED) has registered one case under the provisions of FEMA, 1999 against a Financial Institution with regard to their high value deposits.

(v) India has entered into information sharing agreement with the USA under the Foreign Account Tax Compliance Act of USA.

(c): Income Tax Department takes appropriate action under relevant laws against the tax evaders. Such action under direct tax laws includes searches, surveys, enquiries, assessment of income, levy of tax, interest, penalties, etc. and filing of prosecution complaints in criminal courts, wherever applicable. The details of prosecution complaints filed during last 5 years by the Income Tax Department under Income Tax Act, 1961 are as under:

*Figures are provisional.

Further,  more than  107 prosecution complaints have been filed under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

(d): As a result of systematic actions, as on 31.05.2021, the following results have been achieved:

• As on 31.05.2021, assessment orders under section 10(3)/10(4) of the Black Money Act, 2015 have been passed in 166 cases, wherein demand of Rs. 8216 crores has been raised.
• Undisclosed income of Rs. 8,465 crores (approx.) has been brought to tax and penalty of Rs. 1294 crores has been levied in HSBC cases.
• Undisclosed income of Rs. 11,010 crores (approx.) has been detected in ICIJ (International Consortium of Investigative Journalists) cases.
• In the Panama Papers Leaks cases, undisclosed credits of Rs. 20,078 crores (approx.) have been detected.
• In the Paradise Papers Leaks cases, undisclosed credits of Rs. 246 crores (approx.) have been detected.

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 3rd August, 2021

PRESS RELEASE

CBDT extends due dates for electronic filing of various Forms under the Income-tax Act,1961

On consideration of difficulties reported by the taxpayers and other stakeholders in electronic filing of certain Forms under the provisions of the Income-tax Act,1961 read with Income-tax Rules,1962 (Rules), Central Board of Direct Taxes (CBDT) has decided to further extend the due dates for electronic filing of such Forms vide Circular No.15/2021 dated 03.08.2021. The details are as under:

(i) The Quarterly statement in Form No. 15CC to be furnished by authorized dealer in respect of remittances made for the quarter ending on 30^th June, 2021, required to be furnished on or before 15^th July, 2021 under Rule 37BB of the Rules, as extended to 31^st July,2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31^st August, 2021;

(ii) The Equalization Levy Statement in Form No.1 for the Financial Year 2020- 21, which was required to be filed on or before 30^th June, 2021, as extended to 31^st July, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be filed on or before 31^st August, 2021;

(iii) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or before 15^th June, 2021 under Rule 12CB of the Rules, as extended to 15^th July,2021 vide Circular No.12 of 2021 dated 25.06.2021, may be furnished on or before 15^th September,2021;

(iv) The Statement of Income paid or credited by an investment fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or before 30^th June, 2021 under Rule 12CB of the Rules, as extended to 31^st July, 2021 vide Circular No.12 of 2021 dated 25.06.2021, may be furnished on or before 30^th September, 2021.

            Further, considering the non-availability of the utility for e-filing of certain Forms, the CBDT has decided to extend the due dates for electronic filing of such Forms as under:

(1) Intimation to be made by a Pension Fund , required to be furnished on or before 31^st July,2021 under Rule 2DB of the Rules, may be furnished on or before 30^th September, 2021;

(ii) Intimation to be made by Sovereign Wealth Fund in respect of investments made by it in India in Form II SWF for the quarter ending on 30^th June,2021, required to be furnished on or before 31^st July,2021 as per Circular No.15 of 2020 dated 22.07.2020, may be furnished on or before 30^th September, 2021.

CBDT Circular No. 15/2021 in F.No.225/49/2021/ITA-II dated 03.08.2021issued today, is available on www.incometaxindia.gov.in. It is also clarified vide the said Circular that the above forms, e-filed, after the expiry of time limits provided as per Circular No.12 of 2021 dated 25.06.2021 or as per the relevant provisions, till date of issuance of said Circular, will stand regularised accordingly.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

Ministry of Corporate Affairs

12,889 shell companies struck off in FY 2020-21

Dated: 03 AUG 2021

There is no definition of the term “Shell Company” in the Companies Act. It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership, benami properties etc. This was stated by Union Minister of State for Corporate Affairs Shri Rao Inderjit Singh in a written reply to a question in Rajya Sabha today.

On the identification shell companies, the Minister stated that the Special Task Force set up by the Government to look into the issue of “Shell Companies” has inter-alia recommended the use of certain red flag indicators as alerts for identification of Shell Companies.

Giving more details, the Minister stated that the Government has undertaken a Special Drive for identification and strike off of Companies by invoking the provisions of section 248 (1) of the Act by which the Registrar of Companies (RoC) struck off those companies after following the due process of law from the Register of companies when RoC has reasonable cause to believe that those companies are not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455.

The Minister listed the total number of companies struck off u/s 248 State/Union Territory-wise as under:

****

RM/KMN

(Release ID: 1741989) 

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) OF RAJYA SABHA STARRED QUESTION NUMBER *84 FOR 27-07.2021, REGARDING PANAMA PAPERS SCAM BY SHRI SUKHENDU SEKHAR RAY:

(a) As on 01.06.2021, total undisclosed credits amounting to Rs. 20,078 crores have been detected with respect to India linked entities in the Panama Paper Leaks.

(b) Disclosure of information regarding specific taxpayers is prohibited except as provided under section 138 of the Income-tax Act, 1961 and section 84 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

(c) Income Tax Department takes appropriate actions in case of persons, who are found to be involved in violation of the provisions of various Acts administered by the Income Tax Department like the Income Tax Act, 1961, and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,2015 etc. Such actions under direct tax law include searches & seizure, surveys, enquiries, assessment and reassessment of income, levy of taxes along with interest, levy of penalties, filing of prosecution complaints in criminal courts etc., wherever applicable. In 46 (forty six) cases of Panama Paper Leaks, Criminal prosecution complaints have been filed of which 20 cases are under the Income Tax Act, 1961 and 26 cases are under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 put together.