Income Tax Department Serves 926 Notices Across Four States and Chandigarh Over Evasion

The Income Tax Department has intensified its crackdown on tax evasion and fraudulent return filings across the North West Region. Notices have been served to 926 tax defaulters across Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, and Chandigarh following a targeted assessment drive.

The shortlisted entities include prominent business owners, industrialists, commercial establishments, and corporate executives. Officials stated that further legal proceedings will be determined once the recipients submit their responses and supporting financial records.

Discrepancies in Income and Turnover

During routine assessments, tax authorities flagged numerous cases where businesses reported substantial commercial growth and high turnover, yet declared progressively lower taxable income and reduced tax liabilities over recent years. Treating these patterns as potential evasion, the department initiated comprehensive audits of their financial disclosures.

Cross-Verification with GST Data

To verify accuracy, authorities matched the filed Income Tax Returns (ITR) against the corresponding Goods and Services Tax (GST) records and banking transactions:

• Turnover Mismatches: Audits uncovered substantial gaps between the sales declared under GST and the total revenue reported to the IT Department.
• TDS Non-Compliance: Discrepancies were identified in Tax Deducted at Source (TDS) deductions and remittances involving vendors, employees, and third-party contractors.
• Corporate Leadership Under Scrutiny: Managing Directors of several corporations have been issued individual notices to explain specific compliance failures.

Punjab Records Highest Violations

Punjab accounted for the highest concentration of notices among the five monitored territories. Key sectors under investigation include major scrap dealers, bicycle manufacturing units, and ancillary industrial suppliers.

The regional probe is being overseen by the Directorate General of Income Tax (Investigation). Taxpayers who received notices are required to present their financial documentation and official explanations before the department to avoid penalties or prosecution.