Demonetisation Aftermath: Income tax raid on doctors reveals undeclared income of Rs 35 crore

Pune Mirror goes on to add that the recovery came after the raids were conducted at the premises of the said doctors as well as after assessing six years of their documents. Some Highly placed sources at the I-T department told Mirror, “The action has been taken after acquiring information from our sources. All the nine doctors were not maintaining their book of receipts and were found guilty during our survey. All of them have accepted that they made incorrect transactions. Their dealings were made through cash. These surveys went on for three days from February 11 to 13. We seized Rs 35 crore of undisclosed income, including Rs 1.40 crore cash in new currencies along with gold worth Rs 80 lakh.”

The IT department has pointed out that surveys and searches were conducted at the premises of 9 doctors including a prominent cardiologist, an IVF specialist, an orthopaedic surgeon. At the same time, many of the doctors confirmed to Mirror that while the survey was conducted, nothing was recovered from their respective premises.

Read Mirror Story: I-T DEPT OFFICIALS PULL UP NINE CITY DOCTORS AFTER SURVEYS

Tax Stand

As per the recently amendments, the treatment of undisclosed income now falls under the ambit of  Pradhan Mantri Garib Kalyan Yojana (PMGKY). While the estimated normal tax rate is 30%, the tax rate applicable after the raid goes upto 60%. This is applicable to cash and deposits. If a raid reveals black money in other forms such as real estate, the raid would culminate in a tax rate of atleast 60% going upto even 137%, reports TOI.

Moreover, if the disclosures are made during the raid and the source of the income is revealed on the spot, that rate of the tax is expected to be 60%. This would include 30% tax and 30% penalty. However, if the assassee established the source after the raid, the tax rate would jump to 107%. This would include  75% tax and 25% penalty and surcharge taking it to 107%. However, if the source of the income is not established by the assessee at all, the tax rate would jump to 137%