In a bid to check the large-scale tax avoidance and evasion, the Income Tax department is going to tighten its noose around willful tax defaulter. The Income Tax department has decided to block the Permanent Account Number (PAN) of tax evading entities and getting their LPG subsidy cancelled. It has also decided to take measures to ensure that they are not sanctioned loans or overdraft facility by public sector banks, as the same is bound to become non-performing assets.
Suggestion of withdrawing facility like LPG subsidy which is directly credited in to the bank accounts of the said defaulters will act to “disincentive” the defaulters. Furthermore, the taxmen have proposed that the identities of such blocked PANs should be circulated to the Registrar of Properties with a request for not permitting any registration of immovable properties where there is the involvement of such PANs. Such defaulters’ information has also been recommended to be circulated across tax offices so that their activities loans or government subsidy can be plugged country-wide.
Moreover, the department has also decided to subscribe to the Credit Information Bureau (CIBIL) data, on a possible payment basis, to check out the financial activities of defaulters and undertake action against them for recovery and freezing of assets.