Hyderabad: The two Telugu states account for the highest number of income-tax defaulters, according to data released by the Central Board of Direct Taxes.
The CBDT has made public the names of 96 I-T defaulting companies/ individuals across the country and 30 of them from the Telugu states — 25 from TS and five from AP. These firms have together defaulted on payment of Rs 1,046 crore.
The CBDT has directed officials to invoke provisions of arrest, detention and auctioning of attached assets of wilful income tax defaulters.
For ‘wilful’ evasion of taxes, Section 276 C (2) of the I-T Act provides for rigorous imprisonment between three months and three years which may be accompanied by a fine.
The department has a designated official to execute these powers, known as a Tax Recovery Officer. The TRO machinery is being strengthened by providing additional infrastructure and manpower.
The provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II would be invoked by the TRO.
I-T wing asked to monitor TROs
“Stringent action can be taken in suitable cases including use of the provision for prosecution under Section 276 C (2) of the Act,” the CBDT noted.
It also asked the principal commissioners of I-T to regularly monitor the work of TROs, especially in the area of attachment and sale of property, to ensure that the attached properties are sold within a year.
The role of a TRO comes at the fag end of a tax evasion case, when the demand raised by the department gets converted into wilful default.
A TRO executes his power of arrest and detention when there is a chronic default.
These provisions were rarely invoked in the past. But the department is seeking strict implementation of its rules as defaulting has become a menace now.
