Dimapur, May 19: Additional Commissioner of Income Tax (Range Dimapur), Imokaba Jamir, IRS on Friday revealed that the Government of India has made available to the Income Tax office the data related to all those people who, post the demonetization, deposited more than Rs 10 lakhs and the department is now verifying the ownerships of all those deposits.
He said the names include many tribals and they have been served notices by the department, but while few of them have responded to the notices, many (about 900) have not responded.
He cautioned that those who did not respond to avoid complications and verify that those money belong to them, failing which the deposits would be treated as ‘benami’, and that will attract taxes besides other consequences.
He was speaking here at the conference hall of Hotel Saramati as a part of the taxpayer outreach programme of the Income Tax Department to educate taxpayers on specific provisions and procedures and to highlight the initiatives taken by the department. It was attended by business communities, student unions, and others.
Imokaba mentioned that people should avoid letting non-tribals use their names to run businesses and acquire properties with the intention of avoiding taxes as the penalty of such activities may result in seven years of rigorous imprisonment as well as 25% of the fair market value of the properties seized as fines under Prohibition of Benami Transaction Act 2016.
He stated that there is a misconception among the tribals that they are exempted from income taxes always, which is not the case and the exemption is only allowed when a person belonging to scheduled tribe, works in a tribal area and derive his/her income from the tribal area. In case a person belonging to ST finds employment in a non-tribal area, he/she needs to pay the income taxes and if two or more persons come together to form an association or company, they need to pay taxes though they might be running businesses in tribal areas.
General Secretary of Tax Bar Association, Advocate Mahabir Jain on the occasion told the attendants that though the tribals are exempted from paying income taxes, they are not exempted from paying taxes at all as they still need to pay taxes on dividends and interests earned among others, and they can be called on to produce necessary documents whenever needed.
Later, answering to a question by an attendant, Jamir said that money with churches and other religious organizations are exempted from taxes though they come under associations on the condition that they register with the Income Tax Department. (Page News Service)