500 undisclosed properties of Indians exposed in Dubai, tax evasion of Rs 700 crore caught in Delhi

Income Tax Department Update: The Income Tax Department has identified 500 cases in which Indians have purchased immovable properties in Dubai but have not declared it. The tax department is preparing to take major action in these cases. In the raid conducted by the Tax Department in Delhi, transactions worth more than Rs 700 crore have been detected which are unaccounted for.

Tax evasion worth thousands of crores possible!

According to the report of Economic Times, the Delhi-based Investigation Wing of the Income Tax Department has conducted more than a dozen surveys and search operations in which evidence of 43 undeclared properties has been found in Dubai. A case of tax evasion worth Rs 700 crore has been detected in Delhi alone. Quoting an official in the report, it has been said that if this investigation spreads across the country, then this case of tax evasion can reach thousands of crores of rupees. According to the report, the Income Tax Department has detected more than 500 cases related to undeclared immovable properties purchased by Indians in Dubai, in which the department is preparing to take action.

Germany shared data

Recently, Germany has shared the data of properties of Indians in West Asia with India. This data was done under the framework of exchange of information under the Double Taxation Avoidance Agreement (DTAA) between the two countries. In this, properties owned by more than 1000 Indian citizens have been detected. However, it is not clear how the German authorities got this information.

Action possible under Black Money Act

During the Income Tax Department’s raid in Delhi, taxpayers have admitted to investing more than Rs 125 crore in undeclared cash. The Income Tax Department has found bogus receipts and records of cash payments and purchases which are being investigated. The department is investigating ways of depositing unaccounted cash abroad, undeclared cash deposits and the possibility of black money being involved in it. The tax department is also considering taking action in the case under the Income Tax Act or Black Money Act.

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