11/12/2017
Don’t Panic, if Income Tax Department Raids You�
The term “Raid in Indian Income Tax Law” is incredulous and any unexpected encounter with IT sleuths generally leads to chaos and vacuity. If you are likely to experience such action it is better to familiarise with the subject, so that, the situation can be faced with confidence and serenity. Income Tax Raid is conducted with the sole objective to unearth tax avoidance. It is the process which authorizes IT department to search any residential / business premises, vehicles and bank lockers etc. and seize the accounts, stocks and valuables.
To face the situation efficiently, it is extremely important to understand some nitty-gritty of I.T. law on the subject. Lack of knowledge leads to panic and all the discomfort. The knowledge of your legal rights and responsibilities always protects you.
Your Rights
1. When Income Tax Search Party visits, you can check their search warrant and also note the date, address and authorization etc. You can also ask for the identification of each member of the raid team and note down their name and designation.
2. You have the right to personally search every member of raid team to avoid any planting of evidence.
3. Women can be checked only by lady members of raid team.
4. Women may not come forward if their religious belief does not allow them to appear in public.
5. In case of any health-related emergency you have the right to call a doctor of your choice. You also have the right to have your meals at proper time.
6. Children can go to school and after clearance.
7. In case of difficulty in seizure of jewellery or other valuable articles (except stock in trade) the department may leave such items after necessary sealing etc. in the custody of assesse. Jewellery up to a specified limit (e.g. 500 grams per married lady, 250 grams per unmarried lady and 100 grams per male member of the family) is generally accepted. If it is a survey and not a search (the warrant will specify that), the raid team does not have the powers to seize or take away any valuables. They can only take away documents, files etc.
8. Whatever is being seized, make sure they are being properly listed and described. Please also have two of your neighbours stand witness to the same.
9. If any valuables do not belong to you, make that known upfront and also provide the name, address and other details of the owner.
10. The raids can only start between sunrise and sunset.
11. You can place your own seal on the package in which seized stuff is stored.
12. You are also entitled to a copy of panchanama.
13. You can also call your C.A or lawyer. He may not have the right to explain things on your behalf but he will ensure the raid team acts within their limits.
Your Responsibilities
1. You should allow free and unhindered ingress into the premises.
2. You should identify all receptacles in which assets or books of account and documents are kept and to hand over keys to such receptacles.
3. You should identify and explain the ownership of the assets, books of account and documents found in the premises.
4. You should identify every individual in the premises and to explain their relationships to the person being searched. You should not mislead them by impersonation. It is an offence punishable u/s 416 of the IPC.
5. You should not allow or encourage the entry of any unauthorized person into the premises
6. You should not remove any article from its place without the notice or knowledge of raid team. If you destroy any document with the intention of preventing the same from being produced or used as evidence before the court or public servant, you shall be punishable with imprisonment or fine or both, in accordance with section 204 of the IPC.
7. You should answer all queries truthfully and to the best of your knowledge. You should not allow any third party to either interfere or prompt while your statement is being recorded by the officer. In doing so, you should keep in mind that –
a. If you refuse to answer a question on a subject relevant to the search operation, you shall be punishable with imprisonment or fine or both, u/s 179 of the IPC.�b. Being legally bound by an oath or affirmation to state the truth, if you make a false statement, you shall be punishable by imprisonment or fine or both u/s 181 of the IPC.�c. Similarly, if you provide evidence which is false and which you know or believes to be false, you shall be liable to be punished u/s 191 of the IPC.
8. You should affix your signature on the recorded statement, inventories and the panchanama.
9. You should ensure that peace is maintained throughout the duration of the search and to cooperate with the search party in all respects so that the search action is concluded at the earliest and in a peaceful manner.
10. Cooperation should also be extended even after the search action is over, so as to enable the authorised officer to complete necessary follow-up investigations.
Options of Assesse After the Raid –�
1. If you feel that the action of the department is unfair, you can file a writ petition before the High Court challenging the raid.�
2. Another option is to challenge the assessment before the Commissioner of Income Tax (Appeal).
