Car purchases via cash under I-T radar

New Delhi: In its ongoing crackdown against black money, the Income Tax Department has people buying cars in cash come under its radar. This is because the income tax returns when compared with car sales throw astonishing numbers.

• The Income Tax department observed that only 24 lakh people declared an annual income of over Rs 10 lakh when 25 lakh new cars are bought every year.
• This has been happening every year for the last five years.
• Data also shows that only 48,417 persons reported an income of more than Rs 1 crore in a year.
•  Yet luxury brands like BMW, Jaguar, Audi, Mercedes, Porsche and Maserati sell almost 35,000 cars every year.
• Notably, in a nation of over 125 crore people, only 3.65 crore individuals file their income tax returns.
• Of the individuals filing returns, 5.32 lakh were with income of less than Rs 2 lakh per annum, and so not within the tax bracket.
• Of the 3.65 crore individuals, there are only 5.5 lakh people who paid income tax of more than Rs 5 lakh.

These numbers are important for anyone who hasn't filed Income Tax return yet has a car or is about to buy a car in cash. Notices can also be sent to such people. This is because the numbers point to a significant number of people who are liable to pay taxes but aren't doing so. The government is shoring up its efforts to check tax evasion post demonetization. (With inputs from PTI)