According to reports, the Income Tax Department has sent notices to some individuals whose bank accounts show low-fund withdrawals. The reason for this move is that the government is attempting to combat tax evasion through data analytics.
The I-T department has requested a detailed breakdown of the low fund withdrawals, including the amount spent on cooking oil, atta, rice, gas, shoes, spices, cosmetics, education, restaurant visits, and even haircuts.
Tax practitioners told that multiple individuals had been informed of this, but the authorities maintain that only a few people who claimed high income appeared to be spending too little, raising the tax authorities' suspicions.
The tax department has also requested information about family members, such as their annual income and PAN numbers. Those who do not submit their information will be assumed by the department to have made an estimated household withdrawal of Rs 1 crore this year.
A tax official stated that these notices are not generic, but have been sent to specific taxpayers who, despite living a lavish lifestyle, withdraw very little from their bank accounts. According to the official, this suggests the presence of an undeclared additional source of income or a cash component.
