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Income Tax Department expressed severe concern over tax fraud.

Income Tax DepartmentGuwahati: Issuing a concern note, the Income Tax Department has expressed severe concern over tax fraud resorted to by salaried employees and assert of indemnity made by members of Scheduled Tribes (ST) in the Northeast region.

The department asserts that it has appeared many cases in which exemption is claimed by the members of ST without understand that the advantage is admissible subject to certain conditions.

RK Gupta, Chief Commissioner of Income Tax, NER said that “There are many cases of ST, who claim exception running into crores of rupees under 10(26) of the Income Tax Act, in spite of them not meeting the exemption criteria. People should understand that there is no blanket exemption.”

He also said that “There are deposits in banks in crores of rupees in the name of members of the Scheduled Tribe community and the persons do not reside in that area, nor does the area have potential to generate that type of income, which does fulfill the criteria of tax exemption.”

On tax fraud by salaried employees, Gupta said that an escalating number of tax-return-related scams of salaried employees have come to light and these frequently relate to claims under different sections on the Income Tax Act, 1961 under chapter-VIA.

Gupta also hinted on large-scale subsidy fraud indulged by a variety of manufacturing units. Moreover, he also expressed anxiety on extensive tax evasion and issues related to TDS.


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