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I-T `search and seizure' raids yield little: CAG

Special Correspondent

Recommends changes in Income-Tax Act and Wealth Tax Act

NEW DELHI : The Comptroller and Auditor General of India (CAG) has contended that though Income - Tax department `search and seizure' raids cost six times more than other processes of tax collection, the revenue mop-up is very little.

The CAG came to the conclusion following a comprehensive cost-benefit analysis of the resources used for conducting such `search as seizure' operations against the additional revenue realised from the raids. It has suggested that appropriate benchmarks be evolved for judging the outcome in such cases, given the fact that the ratio of revenue generated to expenditure incurred is quite low.

In its analysis, CAG covered I-T raids completed by the Department during four fiscal years (2001-02 to 2004-05), which were conducted across 10 States, including Delhi, Gujarat, Maharashtra and Uttar Pradesh.

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