Income tax dept identifies 1.2 million PAN holders not filing returns
As many as 1.2 million Permanent Account Number (PAN) holders have not filed income tax returns had not filed their returns, despite making huge transactions, the union finance ministry said on Monday.
The finance ministry said in a statement that it had zeroed on errant individual tax assesses, after notices were sent following the intelligence wing of the Income Tax (I-T) Department's Directorate of Criminal Investigation sifted through nearly 4.7 crore significant financial transactions.
The information about PAN holders is available in 148 codes of annual information returns; tax deducted at source, tax deducted at source returns as well as central information branch data. The ministry also collected information the cash transaction reports of the financial intelligence unit.
The ministry added in the statement, "This data analysis has identified a target segment of 12, 19,832 non-filers linked to more than 47 million information records. Rule-based algorithms have been used to identify high priority cases for follow-up and monitoring."
The statement also said that the identification of many of those non-filers was unprecedented, and that of those, around 35,000 were being sent letters.
There is a considerable disparity between the number of PAN card holders and I-T returns filed. As per a report by the Comptroller General of Accounts (2010-11), there were around 95.8 million PAN cards holders by March 2010, but the number of I-T returns filed during the same year stood at just 34.1 million.