Tax Lens On Luxury Shoppers

A top businessman purchased a watch of his dream for Rs 20 lakh year. The watch has become a nightmares for the Income Tax Department and sending him a notice for purchasing that watch.

After few days, the government said that the Income Tax Department is scrutinising people who have purchased luxury goods with a transaction of about 7 lakh. Notices are being sent to businessmen, traders and even professionals who have purchased luxury goods by using debit cards and even by providing their PAN numbers while purchasing it.

Mr. Das who has purchased the watch said that he never thought of receiving a notice for the purchase but the earning of his is Rs. 5 crore annually.

Tax experts have said that high salary earners have also received scrutiny, where they may not be the primary targets. It seems to be a tactic to corral those with black money so that they declare it by September under the income declaration scheme (IDS).

Many top consultants and lawyers has been tackled such cases for their client, nearly 4000 to 5000 notices have been sent out. Even senior lawyers have received notices for purchasing luxury goods.

The Income Tax notices read more like a prod to declare all the undeclared assets under IDS or face the music. People who have received the notices are required to file with the reply with a month. In few cases, they even require to visit the Income Tax office.

The Tax notices are sent to those who have purchased luxury goods for about Rs. 4 lakh in or after 2013. The revenue officials are collecting information from the sellers for pass few time now.

Income Tax Departments are sending notices to the sellers who have purchased watch above Rs. 50,000. Whatever information they had regarding the purchasers, they have provided all of them to the income tax department.

Tax Assist is a professional income tax consultancy in India for both corporate houses and individual tax payers; the latter comprising Salaried Individuals, Seafarers, Professionals and Non Resident Indians. 

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