Income Tax Department

Taxation has been one of the key function of the sovereign state since ancient times. In Manusmriti, the Manu stated that the king has the sovereign power to levy and collect tax according to sastras.{{cite book|author=Jha S M (1990) |title=Taxation and Indian Economy|publisher=New Delhi: Deep and Deep Publications}}

{{Blockquote

|text=लोके च करादिग्रहणो शास्त्रनिष्ठः स्यात् । — Sandeep Baldi, Shyam Nagar 128, Manusmriti

(It is in consonance with sastras to collect taxes from citizen.)

}}

In Bodhayana Dharmasutras, it is mentioned that the king received 1/6th of income from his subjects, which was legally termed as tax. In lieu of this tax, the king had a duty to protect his subjects.

According to Kautilya's Arthashastra – an ancient treatise on the study of economics, the art of governance and foreign policy – artha had a much wider significance than wealth. According to him, the power of the government depended upon the strength of its treasury. He stated: "From the treasury comes the power of the government, and the earth, whose ornament is the treasury, is acquired by means of the treasury and army." In Raghuvamsh, Kalidas, eulogising King Dalip, said, "it was only for the good of his subjects that he collected taxes from them just as the sun draws moisture from the earth to give it back a thousand time."{{cite web|url=https://www.thehindubusinessline.com/2000/02/14/stories/211464tn.htm|title=The evolution of income-tax|publisher=www.thehindubusinessline.com|access-date=4 August 2019|archive-date=4 August 2019|archive-url=https://web.archive.org/web/20190804122856/https://www.thehindubusinessline.com/2000/02/14/stories/211464tn.htm|url-status=live}}

The 19th century saw the establishment of British rule in India. Following the mutiny of 1857, the British government faced an acute financial crisis. To fill up the treasury, the first Income-tax Act was introduced in February 1860 by James Wilson, who became British-India's first finance minister. The act received the assent of the governor general on 24 July 1860, and came into effect immediately. It was divided into 21 parts consisting of no less than 259 sections. Income was classified under four schedules: i) income from landed property; ii) income from professions and trade; iii) income from securities, annuities and dividends; and iv) income from salaries and pensions. Agricultural income was subject to tax.

Subsequently, many laws were brought to streamline income tax laws. For example, the Super-Rich Tax was introduced in 1918, and the new Income-tax Act was passed in 1918. But most important among all these were the Income-tax Act of 1922. This act of 1922 marked an important change from the act of 1918 by shifting the administration of the income tax from the hands of the provincial government to the central government. Another remarkable feature of this act was that the rates were to be enunciated by the annual finance acts instead of in the basic enactment.{{cite web|url=https://shodhganga.inflibnet.ac.in/bitstream/10603/113603/8/08_chapter%203.pdf|title=EVOLUTION OF INCOME TAX SYSTEM IN INDIA|publisher=Shodhganga|access-date=4 August 2019|archive-date=7 July 2020|archive-url=https://web.archive.org/web/20200707010944/https://shodhganga.inflibnet.ac.in/bitstream/10603/113603/8/08_chapter%203.pdf|url-status=live}} Again, the new Income-tax Act came in 1939.

{{see also|The Income-tax Act, 1961}}

The 1922 act was amended not less than twenty nine times between 1939 and 1956. A tax on capital gains was imposed for the first time in 1946, although the concept of ‘capital gains’ has been amended many times by later amendments. In 1956, Mr. Nicholas Kaldor was given the responsibility of investigating the Indian tax system in light of the revenue requirement of the second five-year plan (1956–1961). He submitted an exhaustive report for a coordinated tax system and therefore, the result was the enactment of several taxation acts, viz., the wealth-tax Act 1957, the Expenditure-tax Act, 1957 and the Gift-tax Act, 1958.

The Direct Taxes Administration Enquiry Committee, under the chairmanship of Shri Mahavir Tyagi, submitted its report on 30 November 1959, and the recommendations made therein took shape of the Income Tax Act, 1961. The 1961 act came in to force with effect from 1 April 1962 by replacing the Indian Income Tax Act, 1922, which had remained in operation for 40 years. The present law of income tax is governed by the Income Tax Act, 1961, which has 298 sections and four schedules and is applicable to whole of India, including the state of Jammu and Kashmir.

Administration in the Income Tax Department (ITD) is run through a statutory body, the Central Board of Direct Taxes (CBDT), at the apex level and 18 territory-based regional headquarters at the field offices level. Besides these are 10 specialised directorates within the Income Tax Department, most extensive and famous among these being the Directorate of Investigation.

The Central Board of Direct Taxes (CBDT) is a part of the Department of Revenue, Ministry of Finance. The CBDT provides inputs for the policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the IT Department. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963. The officials of the Board in their ex officio capacity also function as a division of the ministry dealing with matters relating to the levy and collection of direct taxes. The CBDT is headed by a chairman and also comprises six members, all of whom are ex officio special secretaries to the government of India.

The chairman and members of the CBDT are selected from the Indian Revenue Service (IRS), whose members constitute the top management of the IT Department. The chairman and every member of CBDT are responsible for exercising supervisory control over specialised functional categories at field offices of the IT Department. Various functions and responsibilities of the CBDT are distributed amongst the chairman and six members, with only fundamental issues reserved for collective decision by the CBDT. The areas for collective decision by the CBDT include policy regarding discharge of statutory functions of the CBDT and of the union government under the various direct tax laws.{{cite web|url=http://www.incometaxindia.gov.in/Documents/4%281%29%28b%29_15092009.pdf|title=Information to be published under section 4(1)(b) of the Right to Information Act, 2005|publisher=Central Board of Direct Taxes, Government of India|date=10 December 2014|access-date=10 December 2014|archive-date=11 December 2014|archive-url=https://web.archive.org/web/20141211025138/http://www.incometaxindia.gov.in/Documents/4%281%29%28b%29_15092009.pdf|url-status=live}} {{PD-notice}}

At present Income Tax Department (ITD) field offices are divided into 18 regions with territorial jurisdiction and one region for international taxation. As required for efficient and effective administration, these regions have some administrative autonomy to carry out duties assigned by CBDT.

Directorates are meant to take responsibility of specialised functions. There are 10 specialised directorates within the Income Tax Department, most extensive and famous among these being Directorate of Investigation.

The Income Tax Department of the government of India is a leader in good governance. Since large portion of population interacts with department on a yearly basis hence good governance by ITD has improved citizen satisfaction with government functioning.{{Citation needed|date=May 2024}} A very well known model of good governance, Sevottam, is being implemented by the Income Tax Department.

{{See also|Sevottam}}

The Income Tax Department is a leader in implementing Sevottam,{{cite web|url=http://www.ficciqualityforum.com/write-ups/t1.pdf|title=OUR SEVOTTAM JOURNEY|publisher=Department of Administrative Reforms and Public Grievances Ministry of Personnel, Public Grievances and Pensions|access-date=11 August 2019|archive-date=28 October 2020|archive-url=https://web.archive.org/web/20201028193436/http://www.ficciqualityforum.com/write-ups/t1.pdf|url-status=live}} which is certification of quality of public service delivery in India. The term Sevottam comes from the Hindi words Seva and Uttam and supposedly means excellence in service delivery. It involves the identification of the services delivered to the citizens, quality of service, its objective, improvement of quality, by using innovative methods for developing business process and more informative with the help of information technology. The citizen-centric approach includes the following three components:{{cite web|url=http://www.pib.nic.in/newsite/feacontent.aspx?relid=66493|title=Sevottam for Ensuring Excellence in Services|publisher=PIB|access-date=8 August 2019|archive-date=8 August 2019|archive-url=https://web.archive.org/web/20190808182457/http://www.pib.nic.in/newsite/feacontent.aspx%3Frelid%3D66493|url-status=live}}

• Citizen Charter and Service Standards: [https://www.incometaxindia.gov.in/Documents/taxpayer-charter.pdf Citizen's Charter]{{cite web|url=https://www.incometaxindia.gov.in/Documents/citizen-charter-declaration.pdf|title=Citizen's Charter 2014|access-date=11 August 2019|archive-date=15 August 2019|archive-url=https://web.archive.org/web/20190815134023/https://www.incometaxindia.gov.in/Documents/citizen-charter-declaration.pdf|url-status=live}} is being published by ITD from time to time to lay down standards of service delivery to taxpayers.
• Public Grievances: Income Tax Department has used technology for easy registration and faster disposal of grievances. Various initiatives taken by ITD are: eNivaran{{cite web|url=https://www.business-standard.com/article/economy-policy/e-nivaran-is-modi-s-gift-to-tax-payers-how-does-the-scheme-work-117050900283_1.html|title=E-Nivaran is Modi's gift to tax payers: How does the scheme work?|publisher=Business Standard|access-date=11 August 2019|archive-date=11 August 2019|archive-url=https://web.archive.org/web/20190811183944/https://www.business-standard.com/article/economy-policy/e-nivaran-is-modi-s-gift-to-tax-payers-how-does-the-scheme-work-117050900283_1.html|url-status=live}} lets taxpayers to directly lodge grievance with their concerned ITD officer; Aaykar Seva Kendra (ASK) acts at integrated grievance redressal center; eSahyog{{cite web|url=http://pib.nic.in/newsite/PrintRelease.aspx?relid=130000|title=The Union Finance Minister Shri Arun Jaitley Launches The "E-Sahyog" Pilot Project of The Income-Tax Department to Facilitate Taxpayers|publisher=PIB|access-date=11 August 2019|archive-date=11 August 2019|archive-url=https://web.archive.org/web/20190811183943/http://pib.nic.in/newsite/PrintRelease.aspx%3Frelid%3D130000|url-status=live}} allows replies through email to ITD officers on detection of errors in tax filings by taxpayers; and other portals like CPGRAMS.
• Service Delivery Enablers: This includes customer feedback, employee motivation and infrastructure. Income Tax Department (ITD) functions largely through computer systems and networks; and feedback of taxpayers is taken regularly through Pre-Budget Consultation{{cite web|url=https://indianexpress.com/article/business/pre-budget-consultations-industry-for-tax-cuts-more-reforms-to-push-investment-5775994/|title=Pre-budget consultations: Industry for tax cuts, more reforms to push investment|date=12 June 2019|publisher=Indian Express|access-date=11 August 2019|archive-date=13 August 2019|archive-url=https://web.archive.org/web/20190813192812/https://indianexpress.com/article/business/pre-budget-consultations-industry-for-tax-cuts-more-reforms-to-push-investment-5775994/|url-status=live}} and regular industry-ministry/department interactions, Outreach Programmes{{cite web|url=https://www.tribuneindia.com/news/ludhiana/income-tax-dept-holds-outreach-programme/733601.html|title=Income-Tax Dept holds outreach programme|work=The Tribune|access-date=11 August 2019|archive-date=11 August 2019|archive-url=https://web.archive.org/web/20190811183942/https://www.tribuneindia.com/news/ludhiana/income-tax-dept-holds-outreach-programme/733601.html|url-status=live |last1=Service |first1=Tribune News }} etc. Employee motivation is subjective but good public perception of ITD ensure high employee motivation.

Ayakar Seva Kendra (ASK; translated as Income Tax Help Centre) is an integrated model that provides single window system for registration of all applications including those or redressal of grievances as well as receipt of paper return.{{cite web|url=https://www.thehindubusinessline.com/news/national/aayakar-seva-kendra-opened/article8769431.ece|title=Aayakar Seva Kendra opened|date=24 June 2016|publisher=Business Line|access-date=8 August 2019|archive-date=8 August 2019|archive-url=https://web.archive.org/web/20190808182455/https://www.thehindubusinessline.com/news/national/aayakar-seva-kendra-opened/article8769431.ece|url-status=live}} The assesses can approach ASK and pose all kinds of queries. ASK is available at almost all Income Tax Department offices across the country.

Launched in 2006 by the Income Tax Department, the Tax Return Preparer Scheme assists small and marginal taxpayers in preparing and filing their tax returns by creating a company of ‘Tax Return Preparers’. Tax Return Preparers are experts in income tax law and in filing of income tax returns. They can charge a maximum fee of Rs. 250, or sometimes nothing.{{Citation needed|date=May 2024}}

Over the years income tax return filing has been made more simple, convenient, and smart through use of technology. This includes following:

• eFiling: eFiling of returns ensured that all returns can be submitted in submitted in digital form at dedicated e-filing website (https://incometaxindiaefiling.gov.in {{Webarchive|url=https://web.archive.org/web/20220219134010/https://www1.incometaxindiaefiling.gov.in/ |date=19 February 2022 }}) without any need of submitting paper returns to Income Tax Department offices. This not only reduced grievances of taxpayers on account of errors in data entry but also made filing of return of income any-time, any-where, convenient exercise.
• SAHAJ and SUGAM:{{cite web|url=https://www.ndtv.com/business/itr-filing-income-tax-return-forms-how-to-file-income-tax-return-which-itr-form-to-use-itr-filing-207392|title=Wondering Which Form To Use For Income Tax Return? Find Out Here|publisher=NDTV}}{{Dead link|date=January 2023 |bot=InternetArchiveBot |fix-attempted=yes }} ITR-1 (SAHAJ) is simplified version of earlier lengthy and complex ITR-1, which is applicable to salaried employees, similarly ITR-4 (SUGAM) is simplified version of ITR-4, which is applicable to small businesses and professionals.
• eVerification: Use of Aadhar Card or Bank Account is made to ensure verification of ITR by taxpayers. It is user-friendly and removed of the hassle of sending the hard copy of the ITR-V form to CPC Centre at Bengaluru, Karnataka. Taxpayers have also reported that the process of e-verification shortens the time taken for processing of the return and issue of refund.{{Citation needed|date=May 2024}}
• Pre-filled ITR: As part of efforts to popularise the electronic mode of filing Income Tax Returns (ITRs), the CBDT is planning to provide “pre-filled” return forms to filers which will have an automatic upload of data on income and other vitals of a taxpayer.{{Citation needed|date=May 2024}}

{{expand section|more explanation on enforcement actions|date=August 2019}}

Taxation law is not only very complex as it requires specialised knowledge and expertise to implement, but also it necessitates various kinds of deterrent actions to ensure compliance by taxpayers.

Assessment is done to ensure correct estimation of total taxable income of an assessee (i.e. taxpayer) and it determines amount of tax to be payable by (or to be refunded to) assessee. Most income tax returns filed are processed by the Centralised Processing Center in Bengaluru{{Cite web |title=Contact Us |url=https://www.incometax.gov.in/iec/foportal/contact-us |access-date=2023-09-28 |website=Income Tax Department |language=en |archive-date=28 September 2023 |archive-url=https://web.archive.org/web/20230928161313/https://www.incometax.gov.in/iec/foportal/contact-us |url-status=live }} on the basis of the information provided by the taxpayer. Such automatic processing of returns is called as "summary assessment" and is carried out in accordance with sub-section (1) of section 143 of the Income Tax Act, 1961.

1. When the Income Tax Department requires clarifications or supporting documents on a return filed by the taxpayer, the taxpayer is served a notice under sub-section (2) of section 143 of the Income Tax Act, 1961 to provide evidence in support of the return filed by the taxpayer.
2. When the Income Tax Department requires clarifications from the taxpayer on certain issues for a better assessment of the income of the taxpayer or requiring the taxpayer to file a return of income if he has not filed one already, a notice under sub-section (1) of section 142 is issued to the taxpayer.

After the notices mentioned in points (1) and (2) above are complied with, assessment is made under sub-section (3) of section 143.

When no compliance is received after the lapse of the time period provided by the assessing officer, assessment is made under section 144.

Such assessments are called "scrutiny assessments."

1. Penalties: These are financial punishments for non-compliance with any specific provision of the Income-tax Act,{{Cite web |title=Penalties and Prosecutions |url=https://incometaxindia.gov.in/Charts%20%20Tables/Penalties%20and%20Prosecutions.htm |access-date=2023-09-28 |website=incometaxindia.gov.in |archive-date=28 September 2023 |archive-url=https://web.archive.org/web/20230928161310/https://incometaxindia.gov.in/Charts%20%20Tables/Penalties%20and%20Prosecutions.htm |url-status=live }} and include penalties for not complying with the notices of the assessing officer.
2. Prosecution: Certain actions of taxpayers, for example wilful evasion of tax, are considered as criminal offence by the Income-tax Act and hence these offences result in prosecution. Such offences are considered criminal because they are deemed to be offences perpetrated against the state, as against offences against a person, which results in a civil prosecution.{{Citation needed|date=May 2024}} A prosecution is a stricter action than a penalty, and while a penalty only is monetary in nature, a prosecution involves serving jail time for the offences.

The department can survey any business premises during the time such place is open for business for physical verification of records and other valuables. Section 133A of the Income Tax Act 1961 provides the department to conduct surveys.

The department can search residential and business premises of any taxpayer to check records and valuables to ensure that no evasion of tax is taking place. Section 132 of the Income Tax Act, 1961 provides the department the power to conduct search and seizure.

Both the survey action and the search and seizure action are known in the general parlance as "raids."

{{expand section|details of most extensive operations by ITD|date=August 2019}}

The finance ministry instructed all revenue intelligence agencies to join the crackdown on forex traders, hawala operators and jewellers besides tracking movement of demonetised currency notes.{{cite news|title=Enforcement Directorate issues FEMA notices to forex, gold traders|url=http://economictimes.indiatimes.com/markets/stocks/news/enforcement-directorate-issues-fema-notices-to-forex-gold-traders/articleshow/55445560.cms|access-date=16 November 2016|work=The Economic Times|archive-date=15 November 2016|archive-url=https://web.archive.org/web/20161115203448/http://economictimes.indiatimes.com/markets/stocks/news/enforcement-directorate-issues-fema-notices-to-forex-gold-traders/articleshow/55445560.cms|url-status=live}}

Income Tax departments raided various illegal tax-evasive businesses in Delhi, Mumbai, Chandigarh, Ludhiana and other cities that traded with demonetised currency.{{cite web |url=http://indiatoday.intoday.in/story/income-tax-department-raids-chandni-chowk-shops-shut/1/807996.html |title=Income tax dept conducts raids across India as illegal financial institutions crop up; shops call it a day |work=India Today |date=11 November 2016 |author=Rai, Arpan |access-date=12 November 2016 |archive-date=12 November 2016 |archive-url=https://web.archive.org/web/20161112185736/http://indiatoday.intoday.in/story/income-tax-department-raids-chandni-chowk-shops-shut/1/807996.html |url-status=live }} The Enforcement Directorate issued several FEMA notices to forex and gold traders. Large sum of cash in defunct notes were seized in different parts of the country.{{cite web|url=http://www.thehindu.com/news/national/tamil-nadu/rs-1322-lakh-in-cash-seized/article9331654.ece?css=print|title=Rs. 13.22 lakh in cash seized|date=11 November 2016|work=The Hindu}}{{cite web|url=http://www.ndtv.com/india-news/rs-4-crore-worth-scrapped-notes-seized-from-maharashtra-trader-1624663|title=Rs 4 Crore-Worth Scrapped Notes Seized From Maharashtra Trader|access-date=21 December 2016|archive-date=16 November 2016|archive-url=https://web.archive.org/web/20161116000956/http://www.ndtv.com/india-news/rs-4-crore-worth-scrapped-notes-seized-from-maharashtra-trader-1624663|url-status=live}}{{cite news|url=http://timesofindia.indiatimes.com/city/shimla/76-lakh-cash-seized-from-vehicle-in-Mandi/articleshow/55379844.cms|title=Rs 76 lakh cash seized from vehicle in Mandi – Times of India|website=The Times of India|date=12 November 2016|access-date=21 December 2016|archive-date=12 December 2016|archive-url=https://web.archive.org/web/20161212112035/http://timesofindia.indiatimes.com/city/shimla/76-lakh-cash-seized-from-vehicle-in-Mandi/articleshow/55379844.cms|url-status=live}}{{cite web|url=http://indianexpress.com/article/india/india-news-india/madhya-pradesh-rs-4-crore-worth-scrapped-bank-notes-seized-from-maharashtra-trader-4371753/|title=Madhya Pradesh: Rs 4 crore-worth scrapped bank notes seized from trader|date=12 November 2016|access-date=21 December 2016|archive-date=4 December 2016|archive-url=https://web.archive.org/web/20161204160154/http://indianexpress.com/article/india/india-news-india/madhya-pradesh-rs-4-crore-worth-scrapped-bank-notes-seized-from-maharashtra-trader-4371753/|url-status=live}}{{cite news|url=http://www.thehindu.com/news/national/other-states/cash-seized-from-two-cars-near-nashik/article9356909.ece?homepage=true|title=Rs. 73 lakh cash seized from two cars near Nashik|website=The Hindu|date=17 November 2016|access-date=2 December 2016|archive-date=15 April 2024|archive-url=https://web.archive.org/web/20240415060537/https://www.thehindu.com/news/national/other-states/Rs.-73-lakh-cash-seized-from-two-cars-near-Nashik/article16667485.ece|url-status=live}} In Chhattisgarh liquid cash worth of {{INRConvert|4.4|m}} was seized.{{cite web|url=http://www.dnaindia.com/india/report-chhattisgarh-cash-worth-rs-44-lakhs-in-rs-500-rs-1000-notes-seized-from-a-man-2272478|title=Chhattisgarh: Cash worth Rs 44 lakhs in Rs 500, Rs 1000 notes seized from a man|work=Daily News & Analysis|date=11 November 2016|access-date=21 December 2016|archive-date=13 November 2016|archive-url=https://web.archive.org/web/20161113093639/http://www.dnaindia.com/india/report-chhattisgarh-cash-worth-rs-44-lakhs-in-rs-500-rs-1000-notes-seized-from-a-man-2272478|url-status=live}} In December 2016, the Income Tax department received more than 4000 emails, on black money holders, in India, within 3 days, when Income Tax Department, issued in public notice an email to report black money.{{cite web|url=http://timesofindia.indiatimes.com/business/india-business/government-receives-4000-emails-on-black-money-in-72-hours/articleshow/56077080.cms|title=Black money, informers crosses 4000|website=The Times of India|date=20 December 2016|access-date=20 December 2016|archive-date=22 December 2016|archive-url=https://web.archive.org/web/20161222074000/http://timesofindia.indiatimes.com/business/india-business/government-receives-4000-emails-on-black-money-in-72-hours/articleshow/56077080.cms|url-status=live}}

Huge amounts of cash in the form of new notes were seized all over the country after the demonetisation.{{cite web|url=http://indianexpress.com/article/india/after-one-month-of-demonetisation-several-crores-worth-of-cash-seized-long-queues-outside-atms-4420098/|title=Rs 111.3 crore and counting: Here is a conservative list of new cash seizures reported post-demonetisation|date=10 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220220606/http://indianexpress.com/article/india/after-one-month-of-demonetisation-several-crores-worth-of-cash-seized-long-queues-outside-atms-4420098/|url-status=live}}{{cite web|url=http://indianexpress.com/article/india/i-t-department-seizes-rs-130-crore-cash-jewellery-post-demonetisation-4414001/|title=I-T department seizes Rs 130 crore cash, jewellery post demonetisation|date=6 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220220254/http://indianexpress.com/article/india/i-t-department-seizes-rs-130-crore-cash-jewellery-post-demonetisation-4414001/|url-status=live}}

In December 2016, over ₹4 crore in new ₹2000 notes were seized from four persons in Bangalore,{{cite news|url=http://timesofindia.indiatimes.com/city/bengaluru/Over-Rs-4-crore-in-new-notes-seized-in-IT-raids-in-Bengaluru/articleshow/55728247.cms|title=New notes worth Rs 4.7 crore seized in I-T raids in Bengaluru – Times of India|website=The Times of India|date=December 2016|access-date=21 December 2016|archive-date=23 December 2016|archive-url=https://web.archive.org/web/20161223202110/http://timesofindia.indiatimes.com/city/bengaluru/over-rs-4-crore-in-new-notes-seized-in-it-raids-in-bengaluru/articleshow/55728247.cms|url-status=live}}{{cite web|url=http://indiatoday.intoday.in/story/bengaluru-cash-seizure-new-rs-2000-notes-demonetisation-black-money/1/825199.html|title=Bengaluru: In Indias biggest seizure since Nov 8, Rs 5.7 crore found – all in new Rs 2000 notes|date=2 December 2016 |access-date=21 December 2016|archive-date=18 December 2016|archive-url=https://web.archive.org/web/20161218163629/http://indiatoday.intoday.in/story/bengaluru-cash-seizure-new-rs-2000-notes-demonetisation-black-money/1/825199.html|url-status=live}}{{cite web|url=http://indianexpress.com/article/india/bengaluru-income-tax-raid-rs-4-crore-seized-4405135/|title=Bengaluru: Rs 2000 notes worth over Rs 4 crore seized by Income Tax dept|date=1 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220195647/http://indianexpress.com/article/india/bengaluru-income-tax-raid-rs-4-crore-seized-4405135/|url-status=live}} ₹33 lakh in ₹2000 notes were recovered from Manish Sharma, an expelled BJP leader in West Bengal,{{cite web|url=http://www.financialexpress.com/india-news/after-bjp-leader-manish-kumars-arrest-babul-supriyo-washes-hands-off-all-linkages-calls-it-wasted-time/467387/|title=After BJP leader Manish Kumar's arrest, Babul Supriyo washes hands off all linkages, calls it 'wasted time'|date=7 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220074721/http://www.financialexpress.com/india-news/after-bjp-leader-manish-kumars-arrest-babul-supriyo-washes-hands-off-all-linkages-calls-it-wasted-time/467387/|url-status=live}}{{cite web|url=http://www.business-standard.com/article/economy-policy/several-bjp-men-caught-with-crores-karnataka-biggest-hotspot-for-illegal-cash-transactions-116120700330_1.html|title=Several BJP men caught with crores; Karnataka biggest hotspot for illegal cash transactions|first=BS Web|last=Team|date=7 December 2016|via=Business Standard|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220075756/http://www.business-standard.com/article/economy-policy/several-bjp-men-caught-with-crores-karnataka-biggest-hotspot-for-illegal-cash-transactions-116120700330_1.html|url-status=live}} and ₹1.5 crore was seized in Goa.{{cite web|url=http://www.abplive.in/india-news/demonetisation-rs-1-5-crore-in-new-rs-2000-notes-seized-in-goa-two-held-459472|title=Demonetisation: Rs 1.5 crore in new Rs 2,000 notes seized in Goa, two held|last=IANS|access-date=21 December 2016|archive-date=7 November 2017|archive-url=https://web.archive.org/web/20171107112608/http://www.abplive.in/india-news/demonetisation-rs-1-5-crore-in-new-rs-2000-notes-seized-in-goa-two-held-459472|url-status=dead}} 900 notes of the new ₹2000 denomination were seized from a BJP leader in Tamil Nadu.{{cite web|url=http://www.hindustantimes.com/india-news/over-900-bills-of-rs-2000-seized-from-tn-bjp-leader-who-backed-demonetisation/story-akRx5YDntU3erDWVE2IxxN.html|title=Over 900 new Rs 2000 notes seized from TN BJP leader who backed demonetisation|work=Hindustan Times |date=2 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220131316/http://www.hindustantimes.com/india-news/over-900-bills-of-rs-2000-seized-from-tn-bjp-leader-who-backed-demonetisation/story-akRx5YDntU3erDWVE2IxxN.html|url-status=live}} Around ₹10 crore in new ₹2000 notes were seized in Chennai.{{cite web|url=http://www.deccanherald.com/content/585634/biggest-seizure-rs-142-cr.html|title=Biggest seizure of ₹142 cr cash, gold post demonetisation|website=Deccan Herald|date=9 December 2016 |access-date=21 December 2016|archive-date=11 December 2016|archive-url=https://web.archive.org/web/20161211132708/http://www.deccanherald.com/content/585634/biggest-seizure-rs-142-cr.html|url-status=live}}

As of 10 December 2016, new notes worth ₹242 crore were seized by the Income Tax Department.{{cite web|url=http://www.hindustantimes.com/india-news/cash-crunch-rs-242-crore-in-new-currency-seized-after-demonetisation/story-ZFidspQbfQqcIGbQPcgtPJ.html|title=Cash crunch? Rs 242 crore in new currency seized after demonetisation|work=Hindustan Times |date=9 December 2016|access-date=21 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220171318/http://www.hindustantimes.com/india-news/cash-crunch-rs-242-crore-in-new-currency-seized-after-demonetisation/story-ZFidspQbfQqcIGbQPcgtPJ.html|url-status=live}}

The Income Tax department conducted raids and surveys in various states in separate cases related to alleged tax evasion, violation of FCRA violation and illicit funding of registered unrecognised political parties.{{Cite web |title=I-T department conducts pan-India raids against unrecognised political parties, linked funding |url=https://www.newindianexpress.com/nation/2022/sep/07/i-t-department-conducts-pan-india-raids-against-unrecognised-political-parties-linked-funding-2495728.html |access-date=2023-09-28 |website=The New Indian Express |date=7 September 2022 |archive-date=28 September 2023 |archive-url=https://web.archive.org/web/20230928161308/https://www.newindianexpress.com/nation/2022/sep/07/i-t-department-conducts-pan-india-raids-against-unrecognised-political-parties-linked-funding-2495728.html |url-status=live }}

The government data reveals that the IT Department has a very low conviction rate.{{cite news |last1=Srivas |first1=Anuj |title=IT Dept and ED Raids Are at an All-Time High, but Convictions Remain Elusive |url=https://thewire.in/political-economy/it-dept-and-ed-raids-are-at-an-all-time-high-but-convictions-remain-elusive |access-date=30 August 2022 |work=The Wire |date=3 March 2020 |archive-date=30 August 2022 |archive-url=https://web.archive.org/web/20220830123131/https://thewire.in/political-economy/it-dept-and-ed-raids-are-at-an-all-time-high-but-convictions-remain-elusive |url-status=live }}

The Income Tax Department has been alleged to have been used to target people and organizations critical of the government.{{Cite web |title=11 Raids In A Month On Opposition, Tax Department Says Can't Give Details |url=https://www.ndtv.com/india-news/11-raids-in-a-month-on-opposition-tax-department-says-cant-give-details-2021070 |access-date=2023-09-28 |website=NDTV.com |archive-date=28 September 2023 |archive-url=https://web.archive.org/web/20230928161310/https://www.ndtv.com/india-news/11-raids-in-a-month-on-opposition-tax-department-says-cant-give-details-2021070 |url-status=live }}{{Cite web |title=Income Tax department surveys Newslaundry, NewsClick offices on charges of alleged tax evasion |url=https://zeenews.india.com/india/income-tax-department-surveys-newslaundry-newsclick-offices-on-charges-of-alleged-tax-evasion-2393219.html |access-date=2023-09-28 |website=Zee News |language=en |archive-date=28 September 2023 |archive-url=https://web.archive.org/web/20230928161309/https://zeenews.india.com/india/income-tax-department-surveys-newslaundry-newsclick-offices-on-charges-of-alleged-tax-evasion-2393219.html |url-status=live }}

• Central Excise (India)
• Indian Revenue Service (Income Tax)
• List of Income Tax Department officer ranks
• Union budget of India

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{{Ministry of Finance (India)}}

{{Economy of India}}

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Category:Income Tax Department of India

Category:Income tax in India

Category:Executive branch of the government of India

Category:Ministry of Finance (India)

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