The government asked all income tax assessees to disclose their true income or risk getting a notice from the tax department.
As tax collections remained muted, growing at 15 per cent to Rs 2.7 lakh crore (Rs 2.7 trillion) in April-November, it asked taxpayers to file correct returns by December 15, when the third instalment of advance tax is due.
"There is no advantage in suppressing the true income or avoiding paying income tax that is due because, sooner than later, the information available with the Income Tax Department will lead the department to the doors of such persons," Revenue Secretary Sumit Bose said in a strongly-worded statement.
Struggling to meet its tax collection target, the finance ministry said only 1.4 million taxpayers disclosed income above Rs 10 lakh (Rs 1 million) in 2012-13, but 1.6 million people made credit card payments of over Rs 200,000 during the year.
As many as 1.1 million bought or sold house property of over Rs 30 lakh (Rs 3 million), 3.3 million had cash deposits of over Rs 10 lakh in a savings bank account.
Besides, 5.2 million people acquired mutual funds of Rs 200,000 or more, bonds or debentures of Rs 500,000 or more, shares issued by a company of Rs 100,000 or more, and bonds issued by the Reserve Bank of India (RBI) of Rs 500,000 or more.
"In assessment year 2012-13, only 1.4 million assessees - including salaried persons, Hindu undivided families, professionals, firms, companies, transporters and retainers - have filed their returns disclosing a taxable income of over Rs 10 lakh. Any fair-minded person will agree this is a gross under-statement,"
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