Income Tax Informants Rewards Scheme, 2018: CBDT

Income Tax Informants Rewards Scheme, 2018: CBDT

To

All Principal Chief Commissioners of Income Tax (CCA)

All Directors General of Income Tax (Investigation)

Sir/Madam,

Sub: Income Tax Informants Rewards Scheme, 2018

Ref: Board’s letter F. No. 292/2/1998-IT (Inv. III) dated 29.11.2007

The undersigned is directed to say that the reward scheme for informants, named ‘Guidelines for grant of rewards to Informants, 2007’, as was issued in 2007 vide Board’s letter referred above, has been revised and “Income Tax Informants Rewards Scheme, 2018” has been issued in supersession of it with effect from the date of issue. Further, guidelines containing a procedure to be followed by Departmental officers for implementation of the Reward Scheme is issued separately. While the “Income Tax Informants Rewards Scheme, 2018” is for public circulation, the “Guidelines for Departmental officers” is for departmental use. Copy of the revised reward scheme is enclosed herewith.

1. Introduction:

In supersession of the ‘Guidelines for grant of rewards to Informants, 2007’ and other existing guidelines on the subject, the following new reward scheme is hereby introduced for regulating grant and payment of reward to a person who is an informant under this scheme. A person can get a reward of up to Rs. Five crores by giving specific information about evasion of Income-tax on income and assets in India and abroad. The identity of the informant shall be kept confidential.

1.1. Short Title: This scheme shall be called “Income Tax Informants Reward Scheme, 2018”.

1.2. Commencement: This scheme comes into effect on the date of issue.

1.3. Scope: This scheme shall regulate the grant and payment of reward to informants in cases where information is received by a JDIT (Inv) from the informant on or after the date of issue of this Scheme that leads to detection of substantial tax evasion under the provisions of Income Tax Act, 1961 and/or the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015. This scheme shall not be applicable to information regarding recovery of irrecoverable taxes as the Central Board of Direct Taxes has issued separate guidelines for the same vide F. No. 385/2112015-IT (B) dated 26.8.2015.

1.3.1. However, the ‘Guidelines for grant of rewards to Informants, 2007’ shall continue to be applicable in cases where information was received before the date of issue of this Scheme.

2. Informant for the purposes of this Scheme:

A person will be considered an informant for the purposes of this Scheme only if he has furnished specific information of substantial tax evasion in a written statement in the prescribed form (Annexure – A to this Scheme) and, based upon which, an Informant Code has been allotted to him by the prescribed authority. No claim for reward shall be entertained from a person who is not an informant under this Scheme, even if such person has furnished some information in any manner. Explanation: A person cannot claim any reward under the scheme if he is not an informant under the scheme, even if such person has furnished specific information of income or assets in any other manner, e.g., through a letter, e-mail, CD, WhatsApp, SMS, phone, posting in social networking site or publishing letter in a newspaper or any other media.

3. Secrecy of identity of informant & information:

Identity of the informant, the information was given by him (including all related documents/annexures), or the reward paid to him shall not be disclosed to any person/authority except when expressly required under any law for the time being in force or by order of any court of law. The documents/annexures relating to identity and information shall remain confidential and be dealt with accordingly. After allotment of informant Code, the person shall be identified with Informant Code only.

4. Procedure of furnishing information by Informant:

4.1. A person who wants to give information of substantial tax evasion in expectation of reward under this scheme may contact the DGIT (Inv.)IPOIT (lnv.)/JDIT (Inv.) concerned. If he appears before DGIT (lnv.)IPDIT (Inv.), they will direct him to appear before JOlT (Inv.) concerned to furnish the information in the prescribed form (Annexure-A). If the jurisdictional JOlT (Inv) considers the information prima facie actionable, the person shall have to submit the information in the prescribed format in Annexure – A by appearing in person before the JOlT (Inv), when called. In case of any difficulty, the person desirous of giving specific information may contact the PDIT (Inv) of the area. The decision ofPDIT (Inv) will be final in the matter of allotment of informant Code under this Scheme.

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