Government warns taxpayers with incomes above Rs10 lakh to pay or face action

The government today asked all income tax assesses to strictly disclose their correct incomes and pay advance tax accordingly by 15 December so as to avoid penal action.

The stern warning follows a dip in advance tax collections in fiscal second quarter and a slowing of tax flows since amidst a slowdown in the country's industrial production and rising inflation.

Speaking to the media, revenue secretary Sumit Bose said there was "gross-understatement" in filing of advance tax by assesses, but, he said, "Sooner than later, the information available with the income tax department will lead the department to the doors of such persons."

A mere 14.62 lakh assesses with over Rs10 lakh annual income, which include professionals like doctors lawyers, accountants, etc, as also companies have declared their taxable income so far during the current assessment year 2012-13 fiscal have so far, a gross understatement considering the actual number of people with over Rs10 lakh income.

''Any fair minded person will agree that this is a gross under- statement," the revenue secretary pointed out.

The I-T department, according to Bose, has information that 33.83 lakh persons made cash deposits totalling Rs10 lakh or more in the savings bank account so far during the financial year.