IT department revises Income Tax Informants Reward Scheme; You can get reward up to Rs 5 crore, here's how

Since the demonetisation move was announced by Narendra Modi government, they have been quite serious in unearthing India’s most critical issue ‘black money’. After all the whole point of launching notebandi was to eliminate cash usage, terror financing and black money. The NDA government has from time-to-time taken various measures in dealing black money, which is why, the Income Tax Department is leaving no stone unturned by carrying out investigations in various offices, houses and states. Now the IT department has taken one step ahead and call in citizens help in giving out any information in regards to black money. And this time, the department has decided to reward people with a certain amount for providing any specific information.

The reward of IT department is breathtaking.

The Ministry of Finance in a notification said, “With the objective of obtaining people’s participation in the Income Tax Department’s efforts to unearth black money and reduce tax evasion, a new reward scheme titled “Income Tax Informants Reward Scheme, 2018” has been issued by the Income Tax Department, superseding the earlier reward scheme issued in 2007.”

Under the revised scheme, a person can get reward up to Rs. 50 lakh for giving specific information in prescribed manner to the designated officers of Investigation Directorates in Income Tax Department about substantial evasion of tax on income or assets in India which are actionable under the Income-tax Act, 1961.

Further, government had earlier introduced Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, in order to investigate and assess income and specific assets kept in foreign countries by people taxable in India, recover tax on it and take other actions like penalty and prosecution.

Therefore, for attracting and encouraging people to give information about such income and assets actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, reward up to Rs 5 crore has been introduced in the new reward scheme.

The ministry said, "The amount has been kept high to make it attractive to potential sources in foreign countries. Under this Scheme, a person can get reward for giving specific information in prescribed manner about substantial tax evasion on income and assets abroad which are actionable under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015."

Information under this scheme has to be given in prescribed manner to the Director General of Income Tax (Investigation) or an officer whom he may authorize in this behalf. Foreigners will also be eligible for reward under this scheme. Identity of the persons giving information will not be disclosed and strict confidentiality shall be maintained.