The new Finance Bill 2017 has stipulated an amendment to the Income Tax Act, which gives power to Tax Officers to investigate 10 year old cases involving undisclosed income of more than Rs 50 lakh. Currently, only six year old cases can be scrutinized by tax officials. The amendment to the Income Tax Act will take affect from April 1, 2017. Anyone involved in such financial crimes till 2007 can now be investigated by income tax officials.
This is part of the government’s effort to check tax evasion, which has been going on in the country for several years. It would be applicable in cases where tax officials find tangible evidence of undisclosed income in assets during a search or seizure operation. A notice can be send to such people in case the assessing officer has documentary evidence that proves that they have not reported their income of Rs 50 lakh or more in a year or in aggregate of four assessment years. “The amended provision of Section 153A shall apply where search under Section 132 is initiated or requisition under Section 132A is made on or after April 1, 2017,” the memorandum said.
Changes have also been made for undisclosed foreign assets, wherein income tax officials can now reopen such cases up to 16 years old. This is part of the government’s ongoing initiative to unearth black money.