Tax Raids: What’s the Difference Between Surveys and Research?

Wednesday, the

According to the tax authorities, the investigations were carried out because of certain alleged irregularities in the financing of these bodies. The searches, however, were carried out as part of an action against some unrecognized but registered political parties.

What is a poll?

Tax authorities conduct investigations to uncover hidden or undisclosed income and assets. Here, the focus is on information gathering.

It is also checked in a survey whether a person or a company has kept its books correctly or not.

It is guided by Section 133A of the Income Tax Act 1961. It was inserted in 1964. Some changes were made to the section through the Finance Act 2002.

What is a search?

Searches are thorough inspections of buildings, places of business and other places to find hidden income or wealth in tax evasion cases. The authorities also have the power to seize documents, assets, bullion, etc., which have been hidden from the authorities. This is why they are also called “search and seizure” operations.

In common parlance this is called a “raid”, but such a word does not exist in the Computers Act 1961. Searches are carried out under Section 132 of the Computers Act.

How are surveys different from research?

  • Surveys can be conducted during business hours, searches have no restrictions
  • Searches allow the seizure of unrecorded assets, during searches authorities must be careful and may be held responsible for confiscation later
  • In case of non-cooperation, thieves can force open any door/window, nothing like this can be done during investigations

Surveys are a softer form of search operations. In surveys, the main purpose is to find information. During a search and seizure, the main objective is to find unrecorded wealth and records of these transactions.

Surveys can only be conducted during business hours. However, searches can be done at any time.

Investigations can only take place at the place where the activity or profession is carried out. In search operations, there is no such restriction.

“The search operation is governed by the provisions of the Code of Criminal Procedure 1973 which allow the party carrying out a search, in the event of non-cooperation, to force open any exterior or interior door or window to gain access to the premises where the search warrant must be However, such power is not conferred for investigative proceedings,” said Geetanshu Bhalla, Director (Tax Regulation), The Virtual Compliance. Trade standard.

“Few taxpayer rights are suspended during the execution of a search warrant, but not during investigative proceedings under the Income Tax Act,” added Bhallah.

Prior to the 2002 finance law, authorities did not have the power to seize an asset during investigations. However, after the modification, the authorities can confiscate the investigated books and documents, but only after registering the reasons for doing so. In addition, they cannot be kept for more than ten days without the authorization of the chief commissioner, the commissioner, the general manager or the director.

In search and seizure operations, the authorities may seize any document or property with the exception of goodwill. They can break all the locks if they don’t have the keys. They can take the help of police officers or any other central government officers for the whole process.

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