The Central Board of Direct Taxes (CDBT) has announced Income Tax Informants Rewards Scheme. Under the scheme anyone can report tax evasion tax theft (टैक्स चोरी) and earn upto Rs. 5 crores reward. The innovative scheme is launched by the Income Tax (IT) department to encourage and involve citizens to know about the people who evaded taxes in India and abroad. Name and identity of the informant will be kept confidential by the government. The scheme is implemented under substantial tax evasion under provisions of IT Act, 1961, Black Money(Undisclosed Foreign Income & Assets) and Imposition of Tax Act 2015. The scheme was first launched in 2007 and revised in 2015
What is Income Tax Informants Rewards Scheme? A scheme by the Central Board of Direct Taxes to reward informants who report substantial tax evasions.
UPDATE: The scheme is relaunched in 2018 and called as Income Tax Informants Rewards Scheme 2018 and the reward amount is now increased to Rs. 5 crores. Earlier Rs. 1 lakh was paid to the informants as instant reward and later based on the actual tax recovery 10% of the recovered amount with maximum cap of Rs. 15 lakh is paid.
Eligibility for Income Tax Informants Rewards Scheme:
- This scheme is open to all
- Any one can report income tax evasion
How to inform the tax evasion?
- To avail this scheme the informant must have specific information on the tax evader
- He must have specific details on the tax evasions
- Evasion must be reported with specific details in a written statement in Annexure A & Annexure B, CLICK HERE TO DOWNLOAD
- The informant of the tax defaulters in India and abroad will get reward of upto Rs. 5 crores
- The reward is applicable only on the amount of the recoverable taxes
- It is not applicable on the amount of taxes defaulted which cannot be recovered
- Income Tax Department official website: incometaxindia.gov.in
- Guidelines for Grant of Rewards to Informants leading to recovery of irrecoverable taxes