No Reward to Informer for Income Tax Evasion Information !

Reward to informer was one very old policy of the Department of Revenue .However , there has been a recent change in thinking about the reward to informer. SO, in 2015 , if you are thinking of earning any reward for information about concealed income or wealth of a person who is evading tax by providing information to income tax department then the news is sad for you. The government now does not intend to give any reward to the informer completely as far as information about the concealed information is concerned.

Position changed ! Read fresh development on reward scheme as on 25th April 2018 . How to Get Reward upto Rs 5 Crore from Income Tax Department ?

However, the government has continued the reward scheme in case of tax evasion of indirect tax @ 20% . So , if you desire to earn income by providing the tax evasion info , find out about indirect tax evasion . If you want to earn income from Income Tax department , then there is still chance , but only if the information about the hidden wealth of the TAX defaulters who have already been assessed but the department fails to collect the tax for the paucity of information about income and wealth of tax defaulters.

FAQs on New Reward Scheme of  Tax Department

CBDT has issued the new guideline for reward to informers vide its INSTRUCTION NO.7/2015 [F.NO.385/21/2015-IT(B)], DATED 26-8-2015 which has provided that reward of maximum Rs 15 Lakh can be given for information about the wealth /income of tax defaulters. Here is frequently asked question about the new reward schem

What is the name of new scheme for reward to informers ?

The reward guideline is called Guidelines for Grant of Rewards to Informants leading to Recovery of Irrecoverable Taxes 2015

What is the date from which this new guideline effective?

The guideline is effective from 01/04/2015

What happened to earlier guideline called Grant of Reward to Informants, 2007 ?

It seems that the said guideline is no more for reward after 01/04/2015 which the effective date for the new guidelines. The opening sentence of the instruction issued says that the new guideline is issued in suppression of Grant of Reward to Informants, 2007 . In plain words , after the new instruction , the 2007 guideline is not effective. However, it is said in the new guideline that any information given earlier than 01/04/2015 and used shall be guided according to old guideline of 2007 only.

Who is informer as per the guideline ?

Informer is an Individual who does not fall under the ineligible person and who provides information about tax defaulters notified under section 287 .  It has been provided that a person will be considered to be an informant eligible for reward  if he furnishes specific information in relation to assets/untraceable assessees concerning irrecoverable taxes. However, the claim of reward shall be confined to cases where action is actually taken in pursuance of the information.

What is the amount of reward to informer ?

The reward would not exceed 10% of the tax, recovery of which is directly attributable to the information/documents supplied by the informant, subject to a maximum of Rs. 15 lakh. The full Board may relax the ceiling of Rs. 15 lacs on the basis of recommendation of the Committee mentioned in guideline

Who is sanctioning authority for the reward?

Upto Rs 1,00,000 of reward , the sanction authority is  Pr. Chief Commissioner of Income Tax/ Chief Commissioner of Income Tax in whose charge the arrears, from which recovery is made, are recorded .

If reward is more ,  a Committee of three officers comprising the Pr.Chief Commissioner (Pr.CCIT) of the region as Chief Commissioner concerned and one other Chief Commissioner of Income Tax nominated by the Pr. CCIT shall approve the reward.

What type of information eligible for rewards ?

Information leading to recovery of taxes of tax defaulters whose names have been published in the public domain under section 287 of the Income-tax Act, 1961.

Who are not eligible for participating in the reward scheme ?

Point no 11 of the Guideline states the kinds of persons or information which will not be eligible for rewards

No reward shall be granted if-

i. The informant is a Government servant who furnishes information or evidence obtained by him in the course of his normal duties as a Government Servant.
ii. The informant is required by law to disclose the information to the Department; or
iii. The informant has access to the information on the basis of a contract with the Government
iv. The Scheme should be confined to only cases where;
(a) assessee is not traceable,
(b) there are no/inadequate assets for recovery,
(c) self assessment tax is outstanding for more than 6 months,
(d) TDS has been deducted but not deposited for more than 6 months.

and their names have been published in public domain under section 287 of the Income Tax Act, 1961.

Is there a performa for application for reward under the scheme ?

Yes, the guideline has provided in Annexure B of the Guideline a performa for the informer to fill up and submitted with the

Where can I get the list of Tax Defaulters ?

Income tax department has put the list of income tax defaulters on its website . Click here 

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