Taxmen To Keep Close Eye On Pay, Perks Of Corporate Bosses

BANGALORE: With a slew of irregularities and non assessments of tax returns, the tax authorities have beefed up the process by keeping a close eye on the compensation paid to top corporate bosses, including their allowances, perks and income from fixed deposits. Additionally, the income tax department is also gearing up to launch a city-specific drive focused on certain categories of spending and investment to widen the tax base, reports Surojit Gupta and Sidhartha of TNN.

According to the city-specific drive for those purchasing a luxury car or an SUV in Lucknow may have to give clear cut explanation with regards to the income shown in their tax returns if it’s not in line with the high-value transactions. Similarly, in Guwahati individuals who incur high expenses in shopping malls, coaching centres or expensive property purchases may also have to give a brief explanation with regards to the expenses.

The directorate of intelligence criminal investigation not only slashed this program in these cities but also across eight other cities which included Bangalore, Kolkata, Chennai, Kochi, Pune and Bhopal to gather data and help fasten up the process.

When it comes to Bangalore, the Tax Department has put a scrutiny on the interest from investment in urban cooperative banks due to the fact that over 6,000 crore of 3.8 lakh people had not been assessed by the income authorities as it was not disclosed in the tax returns.
Similarly, for Kolkata residents who spill out more money on producing films, TV serials or media content are under the lens, while in Kochi, income from house boats and capital gains on land sold to Vizhinjam International Seaport is set to go down under the hammer.

The tax officials also stated that the city-specific drive is a step taken to strengthen tax deducted at source which has emerged as a major source of revenue and information flow for the income tax department. As a result the compensation structure of top executives "with a view to examine the nature of allowances, perks and reimbursements will be examined,” said tax department sources.

Additionally, the tax department officials have also asked the top bosses of educational institutions to keep a check on payments made to guest lectures, event managers and also to medical transcription companies.
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