CBDT chief M.S. Darda in Calcutta on Friday. A Telegraph picture

Calcutta, Dec. 16: In a bid to tighten the tax net and to covey a stern message to tax evaders, the Central Board of Direct Taxes (CBDT) has sent out 1.6 lakh letters to individuals based on the annual information return (AIR).

“The AIR has unearthed 12.34 lakh transactions, each averaging around Rs 1 crore, totalling Rs 1,09,0430 crore in all,” said CBDT chief M.S. Darda. He was speaking at a session organised by the Bengal Chamber of Commerce and Industry.

“We want to convey a message to all those individuals who thought that the income tax department does not have the means and the resources to track tax evasion that the department is now fully equipped to do so,” explained Darda.

The AIR has disclosed transactions made under eight heads, including cash deposits and receipts over Rs 10 lakh, single credit card purchase exceeding Rs 2 lakh, purchase or sale of property over Rs 30 lakh, purchase of bonds, shares, debentures and RBI bonds over Rs 5 lakh. In all such transactions, individuals have either not quoted or misquoted their permanent account number (PAN).

“We are still in the process of screening the transactions based on the data given to us by the suppliers such as the banks, credit card companies and others and till date we have sent letters to 1.6 lakh such individuals requesting their response within 15 days,” Darda said.

In an attempt to further tighten the noose, the department is planning to merge the database of AIR and banking cash transaction tax.

“We are in the process of studying these reports together so that it gives us even more detailed information of money laundering transactions and tax evasions,” Darda explained.

While ruling out the reversal of fringe benefit tax, Darda said the process would be made less painful.