Published Date - 25 April 2018 04:21:49 Updated Date - 25 April 2018 04:22:34

CBDT Announces Income Tax Informants Rewards Scheme 2018─To Reward upto 5 Crore to Informants

Central Board of Direct Taxes (CBDT) has announced a new Income Tax Informants Rewards Scheme 2018. Under this scheme, IT department will give a reward of upto Rs. 5 crore to the informants. The scheme announced by the CBDT regulates grant and payment of reward to a person who is an informant under this scheme. According to the earlier guidelines, an informer will get Rs 1 lakh as an instant reward if the tip-off leads to tax recovery. The rest of the reward money, 10% of the total tax liability with a maximum cap of Rs 15 lakh, is subject to the final settlement of the case. Under this scheme, IT department will give a reward of upto Rs. 5 crore to the informants. CBDT, Central govt. also regulates grant and payment of reward to an informant who provides information to JDIT (INv) that leads to a substantial tax evasion under provisions of IT Act, 1961, Black Money and Imposition of Tax Act 2015.

As per the said scheme, a person can get reward up to Rs. Five crore by giving specific information about evasion of Income tax on income and assets in India and abroad. It promises that the identity of the informant shall be kept confidential. Income Tax department will keep the identity of informant confidential. To avail this reward scheme, a person must furnish specific information of substantial tax evasion in a written statement in Annexure A (prescribed form) of this scheme.

Previously any informer gets Rs. 1 lakh instant reward, 10% of tax liability with max. limit of Rs. 15 lakh on tax recovery. This amount is now increased to 5 crore rupees.

Important Features of  Income Tax Informants Rewards Scheme 2018:

The important features and highlights of this IT Informant Reward Scheme are as follows:-

  • Any Informer who provides information about tax evasion to JDIT which leads to tax recovery will get Rs. 5 crore as reward.
  • The informant must provide specific information regarding income and assets in India and abroad to avail this amount.
  • Identity of the informant will remain confidential.
  • ITIRS will regulate the grant and payment of reward to information who assists in detection of substantial tax evasion under Income Tax Act – 1961 and Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act – 2015.
  • This new scheme will not be applicable to info. regarding irrecoverable taxes as mentioned in the CBDT guidelines. Even the informants who have given information prior to the date of issue of this scheme will also be eligible to get reward of Rs. 5 crore.
  • All the people needs to furnish the specific information about tax evasion in a written statement in prescribed Annexure A of the scheme to be called as an Informant under ITIRS 2018. Each person will get a unique informant code by the authority.

Earlier, CBDT provides Rs. 1 lakh instant award on receiving information leading to tax recovery. Rest reward money of 10% of total tax liability with maximum cap of Rs. 15 lakh is given at the time of final settlement of case.

 No claim for reward shall be entertained from a person who is not an informant under this Scheme, even if such person has furnished some information in any manner.

 


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