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With the advent of globalization, a large number of multinationals setting up base in our country and Indian enterprises acquiring businesses overseas, international taxation has emerged as a very important and specialized new area of taxation. |
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One of the important wings of the Income Tax Department is the Investigation Wing. It may also be called the enforcement machinery or the deterrence machinery of the department. The machinery works towards the broad objective of combating tax evasion. |
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A large part of the Income Tax Department is comprised of the charges of Commissioners of Income Tax, which function under the over-all supervision and control of a Chief Commissioner of Income Tax. Each Commissioner’s charge is sub-divided into ranges and each range is headed by either an Additional Commissioner or a Joint Commissioner .. |
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The task of combating tax evasion and checking the proliferation of black money is a daunting one. The government has, however, been continuously striving to eradicate the menace. Towards this objective, various steps have been taken by the Income Tax Department from time to time. |
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As the name itself suggests, laundering here refers to converting the dirty /tainted /crime money into clean /untainted / legally earned legitimate money. Money laundering involves certain processes undertaken to conceal the identity or source of illegally gained money. |
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One may wonder how black money could harm the system when it is already a part and parcel of it. First of all, it distorts the national statistics as transactions carried out with black money do not get recorded. |
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It is also important to understand the meaning of tax evasion in the correct perspective. Whenever a person either under-reports or does not report any income with the intention of reducing his tax liability, it can be said to be a case of tax evasion. |
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The presence of black money in the economy constitutes black economy, which is also referred to as the parallel economy. A number of definitions have been attempted to describe the nature of black economy. |
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All payments made out of unaccounted funds, which have not borne the due tax liability, are black money transactions. Similarly, if the retailer decides to record only a part of his cash sales, he would also be generating income on which he would not pay any tax, ... |
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