(a) the rules and regulations made to give suitable reward to the person providing such information on tax evasion;
(b) the steps taken by the Government to collect more and more such information; and
(c) the success achieved by the Government vis-a-vis steps taken by the Government?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a): There are Guidelines for ‘Grant of rewards’ to informants, who provide information on
tax evasion. So far as direct taxes are concerned the Competent Authority may grant reward not
exceeding 10% of the extra income-tax and wealth tax levied and actually realized subject to
the conditions laid down in the Reward Guidelines. So far as indirect taxes are concerned the
informers are eligible for reward up to 20% of the net sale- proceeds of the contraband goods
seized and/or amount of duty evaded plus amount of fine and penalty levied/imposed and recovered
or at the specific rates indicated.
(b) & (c): The Reward policy of the Government is available in the public domain for
encouraging informers to provide information relating to tax evasion.
The investigative agencies have become more accessible to the informers through
advancement of information technology. These measures have resulted in increase in number
of actionable intelligence and consequent detection of tax evasion cases.