The I-T department has also conducted surveys of various accounts in companies as well as individuals. In the last five years, a total of 30,846 surveys were conducted. "It is only based on the surveys' reports, decisions are taken to search a premises or not. Though media uses the word raid for searches conducted by the department, there is no mention of the word raid in the Income Tax Act," says the official.

"With the availability of information in electronic form, the Income Tax department has developed a wide range of non-intrusive methods for detecting tax evasion. Some of the important measures include-Computer Assisted Scrutiny Selection (CASS) for selection of cases for scrutiny; Non-Filers Monitoring System (NMS) to prioritise action on non-filers; Income Tax Business Application (ITBA) to help in curbing tax evasion through putting in place end to end processes for all verticals of the department," says the official.

The department is also involved in extensive use of information technology and data analytics tools also helps in identification of high-risk cases, expeditious e-verification of suspect cases and enforcement actions in appropriate cases.

The department collects information on Specified Financial Transactions (SFT), above-notified thresholds, relating to cash deposits, credit card payments, purchase and sale of properties, purchase of shares and mutual funds etc. Such information is collected, collated and analysed for computer-aided scrutiny and risk profiling of taxpayers, identification of non-filers and stop filers etc.

Enactment of the Benami Transactions (Prohibition) Amendment Act, 2016 to amend the Benami Transactions (Prohibition) Act, 1988 with a view to enable confiscation of benami property and prosecution of benamidar and the beneficial owner.

"The government has brought in a large number of legislative provisions in the Income Tax Act, 1961 to effectively tackle the menace of black money by restricting cash transaction of ₹2 lakh or more, no deduction under Section 80G allowed if cash donation exceeds ₹2,000, and restriction imposed on donations of ₹2,000/- or more to political parties otherwise than by a bank account or through electoral bonds," says the official.

Under Customs Duty, the Central Board of Indirect Taxes and Customs (CBIC) has filed outright smuggling cases to the extent of 42,754 in the last four years from 2020-21 to 2023-24 (up to May). The total value is smuggling is ₹45,965 crore.

With regard to cases of commercial fraud, a total of 12,259 cases have been filed in the same period the total value is ₹82,989 crore and duty evasion to the extent of ₹21,224 crore.

The Central Board of Indirect Taxes and Customs (CBIC) through its customs field formations, along with DRI, is actively engaged in detecting and curbing import-export related commercial frauds.

"Data analysis-based risk management and intelligence development along with human intelligence are being employed by said formations to gather actionable intelligence, which has resulted in substantial detections of tax evasion in recent years," says the official.

On the basis of investigations conducted, alerts and modus operandi circulars are being issued from time to time to sensitise other customs field formations and risk management teams about potential risk parameters so that necessary vigil and safeguards may be put in place in a timely manner, he said.

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