Executive Summary:
This document is a response to Lok Sabha Unstarred Question No. 3475 regarding income tax operations in the Northern States, answered on August 11, 2025. It details the Income Tax Department's (ITD) actions related to detecting tax evasion and unaccounted income, search and seizure operations, prosecutions, and measures to strengthen tax enforcement. The information covers the period from 2016 to June 2025 (provisional for 2025-26).
Key Points / Main Content:
* **Tax Evasion and Unaccounted Income:**
* Investigation of tax evasion and unaccounted income is ongoing.
* The ITD takes actions, including searches, surveys, income assessment, tax recovery, penalties, and prosecutions, as per the law.
* **Search, Seizure, and Survey Operations:**
* The ITD conducts search, seizure, and survey actions based on credible information about violations of the Income Tax Act, 1961.
* Premises searched often span multiple states, making it difficult to attribute seized amounts to specific states.
* Businesses/professions involved are diversified, including real estate, manufacturing, trading, construction, and medical.
* Detailed search/seizure and survey statistics from FY 2016-17 to June 2025 are provided, including the number of actions and total seizures in INR Crore.
* **Prosecution, Penalties, and Recovery of Dues:**
* Tax assessments are finalized based on evidence from search, seizure, and survey actions.
* Income assessed and tax demanded are finalized after appellate proceedings (CITA, ITAT, High Court, Supreme Court).
* Prosecution, penalties, and recovery are initiated in applicable cases, subject to appellate proceedings.
* Year-wise details of fresh prosecution cases launched in Assam and other North Eastern States from FY 2016-17 to 2024-25 are provided.
* **Confidentiality:**
* Disclosure of information about specific assessees is prohibited except as per Section 138 of the Act.
* **Government Measures to Strengthen Tax Enforcement:**
* The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (effective 01.07.2015).
* The Benami Transactions (Prohibition) Amendment Act, 2016 to enable confiscation of benami property and prosecution.
* Effective enforcement actions, including investigations in foreign assets cases.
* Data utilization for non-intrusive guidance to taxpayers for enhanced compliance (NUDGE).
Impact Analysis:
* **Taxpayers:**
* Impact: Subject to potential searches, surveys, assessments, penalties, and prosecution if found to be in violation of tax laws. Benefit from guidance for better compliance.
* Action Required: Ensure compliance with tax laws, respond to notices or inquiries from the ITD, and utilize available guidance for better compliance.
* **Income Tax Department:**
* Impact: Responsible for conducting investigations, searches, surveys, assessments, and prosecutions.
* Action Required: Continue to enforce tax laws, conduct investigations based on credible information, and provide guidance to taxpayers.
* **Government (Ministry of Finance):**
* Impact: Accountable for overseeing tax enforcement and implementing measures to curb financial irregularities.
* Action Required: Monitor the effectiveness of tax enforcement measures and make necessary adjustments to policies and legislation.
Key Entities Referenced
Income Tax Department: The government agency responsible for administering and enforcing income tax laws in India. Also referred to as ITD.
Assam: A state in North Eastern India where the Income Tax Department has detected unaccounted income.
North Eastern States: A group of states in India, including Assam, that are being investigated for unaccounted income.
Income Tax Act, 1961: The primary legislation governing income tax in India.
Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act, 2015: An Indian law enacted to address the issue of black money held abroad.
Benami Transactions Prohibition Amendment Act, 2016: An Indian law that amends the Benami Transactions Prohibition Act, 1988, to enable confiscation of benami property and prosecution of offenders.
SHRI GAURAV GOGOI: Member of Parliament who asked the question regarding income tax operations in the Northern States.
SHRI PANKAJ CHAUDHARY: Minister of State for Finance who provided the answer to the question regarding income tax operations.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA
UNSTARRED QUESTION NO. 3475
TO BE ANSWERED ON
MONDAY, 11TH AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)
INCOME TAX OPERATIONS IN THE NORTHERN STATES
3475: SHRI GAURAV GOGOI:
Will the Minister of Finance be pleased to state:
(a) whether the Income Tax Department has detected over 5,000 crore unaccounted
income in Assam and other North-Eastern States since 2016;
(b) the number of search and survey operations conducted in Assam during this period
and the key sectors involved;
(c) the number of these cases have resulted in prosecution, penalties or recovery of dues;
(d) whether any person or Government contractor is under investigation in connection
with these findings; and
(e) the specific steps taken/to be taken by the Government to strengthen tax enforcement
and curb financial irregularities in the region?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Investigation regarding detection of tax evasion and unaccounted income is an ongoing
process and whenever any instances come to the notice of Income Tax Department (ITD),
appropriate action including searches, surveys, assessment of income, levy & recovery of
tax, imposition of penalty and launching of prosecution, is taken as per law, depending upon
the facts and circumstances of each case.
(b): ITD conducts search & seizure and survey actions as per law in relevant cases, where
any credible information is received about violation of provisions of the Income Tax Act,
1961 (Act).The premises of the persons searched under the provisions of the Act are usually
spread across multiple states/geographies. Accordingly, these searches and the amount of
unaccounted money seized therein, cannot be attributed to any particular state(s). The
persons covered in such actions are engaged in diversified businesses/professions across
different sectors spread all over the country such as Real Estate, Manufacturing, Trading,
Construction, Medical & Hospital, etc. Details with respect to search & seizure and surveyactions conducted by the ITD in the country (including state of Assam) since 2016 are as
follows:
Search & seizure actions
Financial Year No. of Group search Total seizure
(In Rs. Crore)
2016-17 1152 1469.42
2017-18 582 992.52
2018-19 966 1567.07
2019-20 984 1289.47
2020-21 569 880.83
2021-22 686 1159.59
2022-23 741 1765.56
2023-24 1166 2555.05
2024-25 1437 2503.73
2025-26* 174 137.18
(Upto June, 2025)
* - Figures are provisional
Survey actions:
Financial Year No. of Surveys Conducted
2015-16 4428
2016-17 12520
2017-18 13547
2018-19 15401
2019-20 12720
2020-21 426
2021-22 1046
2022-23 1245
2023-24 737
2024-25 465
2025-26 (upto June,2025)* 17
*Figures are provisional(c): On the basis of the evidence gathered during the search & seizure and survey actions
carried out by the ITD and the subsequent investigation, tax assessments are finalized and a
tax demand is raised. However, the income assessed and the tax thereupon get crystallized
conclusively only when appeals, if any, preferred before CIT(A), ITAT, Hon’ble High Court
and Hon’ble Supreme Court are decided. Further, the prosecution, penalties or recovery of
dues under the Act are initiated, in applicable cases. These proceedings are also subject to a
appellate/judicial proceedings. However, the year-wise details regarding number of
prosecutions launched by the ITD in Assam and other North-Eastern states is provided as
follows:
Financial Year No. of cases of fresh prosecution
launched in Assam and other North-
Eastern States
2016-17 0
2017-18 76
2018-19 38
2019-20 5
2020-21 0
2021-22 0
2022-23 1
2023-24 20
2024-25 3
(d): The disclosure of information in respect of specific assesses is prohibited except as per the
provisions of section 138 of the Act.
(e): Steps taken by the Government to strengthen tax enforcement and curb financial
irregularities in the country (including the state of Assam and other North-Eastern States), are
detailed as below:
(i) Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act,
2015 which has come into force w.e.f. 01.07.2015 has been enacted to specifically
and effectively deal with the issue of black money stashed abroad.
(ii) Benami Transactions (Prohibition) Amendment Act, 2016 has been enacted to
comprehensively amend the Benami Transactions (Prohibition) Act, 1988 with aview to, inter alia, enable confiscation of benami property and prosecution of
benamidar and the beneficial owner.
(iii) Effective enforcement actions have been undertaken including expeditious
investigation in foreign assets cases. Such actions include searches, surveys,
enquiries, assessment of income, levy of taxes, penalties, etc. and filing of
prosecution in criminal courts, wherever applicable.
(iv) The data received by Income Tax Department is also used in a non-intrusive manner
to NUDGE (Non-Intrusive Usage of Data to Guide and Enable) Taxpayers,
primarily with objective to guide and enable them for better and enhanced
compliance towards tax laws with ease.
****