Here we are sharing a piece of big news with you the Income Tax Department is prepared to take stringent action against high-net-worth individuals (HNIs), who engage in tax underpayment discovery that the decline in the highest tax rate on personal income from 42.74% to 39% in the FY24 Budegt has not prevented tax evasion among HNIs. Since the news has come on the internet and it has gone viral on the social media platforms. Now people are super curious to know about the news. Here we have more information about the news and we will share it with you in this article.
Currently, the department has been immersed in a complete “360-degree profiling” of individuals who have either reported or have been likely to have an annual income exceeding 1 crore. This involves scrutinizing their investment patterns, costs, and income starts. The department has shown that the count of taxpayers who announced an annual income of 1 crore or more increased seriously drags behind the true count of people having such income. Since the news has come on the internet many people are super keen to know about the whole information. Scroll down to the next page for more information about the news.
This indicates that a significant portion of HNI individuals may be engaged in tax underpayment. Once the screening process is finalized, the department will issue statements to those people who have inaccurately reported their income. In 2023’s Budget, the government declined the surcharge for people with an annual income of 5 crores and higher, resulting in an important decrease of 374 basis points in their effective tax rate sufficient tax rate. Nevertheless, the department has decided that this transition did not achieve the planned outcome of preventing tax deterring tax evasion among HNIs. You are on the correct page for more information about the news, so please read the complete article.
How can HNIs evade scrutiny from the Income Tax Department?
1. Provide accurate and thorough reporting of their income in their tax returns.
2. Keep complete documents to substantiate their claims, including retaining receipts for expenses and invoices for investments.
3. Stay informed about the most recent tax laws and regulations.
4. Seek guidance from tax experts when in doubt about any tax-connected matters.
HNIs must be aware that the Income Tax Department has been using progressively advanced tools and methodologies to determine tax evasion. Therefore, they must exert caution and abstain from participating in any tax avoidance or evasion schemes. Here we have shared all the information that we had. Stay tuned to us for more updates.