Guidelines for Grant of Reward to Informants leading to Recovery of Irrecoverable Taxes, 2015.

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....uts/assets of persons, on or after 31.03.2015, which results in the collection of taxes, penalties, interest or other amounts (hereinafter "tax") already levied under the Income Tax Act, 1961 and the Wealth Tax Act, 1957. Grant and payment of reward for information provided before 31.03.2015 will continue to be regulated by 'Guidelines for Grant of Rewards to Informants 2007'. (ii) These guidelines will be applicable if the jurisdictional Pr. Chief Commissioner/Chief Commissioner is satisfied that the  tax could not be recovered despite all possible efforts having been made by the Department to trace the defaulter assessee or his assets and the information provided by the informant has resulted in recovery of tax. 3. Reward Amount i.  Individuals will be eligible for rewards based on the tax collected as a result of any administrative or judicial action resulting from the information provided. The quantum of tax collected will  be determined only after all assessments have become final and no appeal/revision/other litigation is pending. ii.  The reward would not exceed 10% of the tax, recovery of which is directly attributable to the information/d....

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....ishes 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. The information provided must be supported by facts/documents and should not be speculative, vague, of general nature or an "educated guess". ii.  In the cases where the documents or supporting evidence are known to the informant but are not in his possession, the informant should describe these documents and identify their location to the best of his ability. iii. The information can be submitted to the jurisdicational Pr.CCIT/CCIT/Pr.CIT of the assesse as mentioned vide publication of his name in public domain or in the office of any other Pr.CCIT/CCIT to the officers designated as nodal officers( not below the rank of Addl/Jt.CIT)  for  receiving  the  information. Information  received  by  any  other Pr.CCIT/CCIT will be forwarded within 15 days to the jurisdictional Pr.CCIT/CCIT. iv. The jurisdictional Pr.CIT will be act as the Nodal Authority to examine and decide the nature of actionable information as pr....

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....help rendered by the informant. c) The risk and trouble undertaken and the expense and odium incurred by the informant in securing and furnishing the information and documents. d)  The quantum of work involved in utilizing the information furnished and the facility with which such tax could be recovered as a result of the information. e)  The quantum of tax recovered which is directly attributable to the information and documents supplied by the informant. f)  The quantum of reward already given in terms of Guidelines for Grant of Rewards to Informants, 2007 where the proceeding or action for levy of tax was originally initiated on the basis of information provided by the same informant. 9. Secrecy of the identity of the informant The identity of the informant shall be kept secret if so desired by him by giving him a number. No information relating to informants or the rewards paid to them shall be disclosed to any authority except in accordance with any law for the time being in force. 10.  Certificate from the Internal Audit Party When the amount of reward is Rs. 1 lakh or more, the Pr.CCIT or CCIT concerned shall, before the grant of reward, ge....

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.... in paragraph 4 are applicable, sanction of the Committee referred to therein, will constitute sufficient authority for drawing the bill on the treasury against the sanctioned allocation. 14.  Control and audit expenditure relating to rewards The control and audit of the expenditure for reward will be governed by the instructions specifically issued for the purpose from time to time. 15. Hindi version shall follow. (Sandeep Singh) Under Secretary to the Government of India   Annexure-A INTERNAL GUIDELINE TO DECIDE ACTIONABLE INFORMATION. 1. The information should be first hand information. 2. Information should be in written form clearly indicating :- I. Movable assets from which recovery can be made. i. Bank Name/ Branch. ii. Account Number iii. Amount shown as balance. iv. Proof of share/debentures & any other negotiable instrument. II. Immovable Assets. a. Undisclosed property, shops investment in real estate. b. Probable inheritance by court decree or any other incident. c. Proof of purchase or sale or ownership of property. III. Investment in foreign Bank Accounts, Assets. 3. Necessary conditions for treating the information as acti....