PAN to be blocked, LPG subsidy to be cancelled and no loans will be given.
IN ORDER to cripple and check the activities of wilful tax defaulters, the Income Tax Department officials have been directed not to shy away from the rare provisions of arrest, detention and auctioning of attached assets of wilful Income Tax defaulters.
It has also decided to ‘block’ Permanent Account Number (PAN) of such entities, get their LPG subsidy cancelled and take
measures to ensure that they are not sanctioned loans. The Central Board of Direct Taxes, in a strategy paper for the current fiscal, has directed officials in the Tax Department to use the rarely-used in this regard. For wilful evasion of taxes, Section 276 C (2) of the IT Act provides for rigorous imprisonment for a period between three months and three years which may be accompanied by a fine.