Dreamz Unlimited joins fight against tax evasion
Eastern Mirror Desk
Dimapur, Feb. 8: With an objective to educate the masses about income tax obligations, and the penalty that the defaulters can be slapped with, a short video titled “My name, not for sale” was released by the Income Tax department, North Eastern Region (NER), in collaboration with short film production house Dreamz Unlimited at Hotel Acacia in Dimapur on Feb 8.
The Income Tax department had on Jan. 26, launched a publicity campaign to create public awareness about income tax obligations in the form of hoardings, standees, and video clips.
The new video aims at educating the tribals, who are exempted from tax, to refrain from Benami transactions by not letting those belonging to non-exempt category to open business using their names. It tells how this irresponsible action leads to Income Tax evasion and the penalty that attracts those indulging in such practices.
The video portrays a man (Naga) who sold his license and electronic shop, which was registered in his name, to a non-Naga many years ago. It was later found out that the non-local was still running the shop with the same name (previous owner), thereby, evading from paying tax for about 20 years. It conveys the message that incomes of all entities, other than individuals and incomes of tribal persons outside scheduled areas, are subject to income tax.
The video was released by Imokaba Jamir, IRS and additional commissioner of Income Tax on Friday.
Government of India has exempted those belonging to the Scheduled Tribe residing in certain specific areas from paying income tax as per the provision of section 10 (26) of the Income Tax Act, 1961. However, many business set-ups run by taxable persons or non-Nagas are registered in the name of the tribals, thereby resorting to tax evasion which is illegal.
To prevent the practice of illegal ownership of properties, Benami Act was amended in 2016, imposing obligations on taxpayers and others not to indulge in illegal transactions or to report such transactions. Serious penal and prosecution consequences have been prescribed for the defaulters.