The Income Tax Department has embarked on a vigorous drive targeting individuals and entities obligated to file their Income Tax Returns (ITR) but have yet to do so. According to a report, the department has identified a staggering 1.52 crore such individuals who, despite having taxable income or tax deducted at source (TDS), have failed to fulfill their filing obligations.
The Central Board of Direct Taxes (CBDT) has issued directives to its field formations to commence outreach to these defaulters starting from April 15th. An official disclosed to the website that in the fiscal year 2022-23, out of approximately 8.9 crore taxpayers, only 7.4 crore filed their returns, including revised submissions.
This glaring disparity suggests that there may be as many as 1.97 crore individuals who, despite having tax deducted at source, have not complied with the requirement to file their ITR. Among these non-filers, a significant proportion comprises 1.93 crore individuals, along with 28,000 Hindu Undivided Families (HUFs), and 1.21 lakh firms, with the remaining falling into various other categories.
The report further highlights instances where bank transactions linked to Permanent Account Numbers (PAN) have been unusually high, underscoring the necessity for filing ITRs. Field officials have been instructed to engage with these non-compliant individuals, providing them with comprehensive data and information regarding their obligations and the consequences of non-compliance.
The CBDT possesses data indicating approximately 8,000-9,000 potential taxpayers, flagged for significant purchases or cash deposits, who will receive tax notices. Individuals found to be willfully evading tax obligations may face penalties, while those with valid reasons for sudden income fluctuations will be required to furnish explanations or file returns as necessary.
Leveraging extensive data analysis, the income tax department aims to identify non-filers and address any discrepancies effectively. The recent announcement follows the CBDT's disclosure last month of a significant surge in net direct tax collections, reflecting a 19.88% growth to over Rs 18.90 lakh crore by March 17th, driven by robust advance tax collections.
The net direct tax collection comprises Corporation Tax (CIT) at Rs 9,14,469 crore (net of refund) and Personal Income Tax (PIT), including Securities Transaction Tax (STT), at Rs 9,72,224 crore (net of refund), signaling a positive trajectory in revenue generation.
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