Karnataka’s Energy Minister DK Shivakumar, or DKS, has stumped taxmen with excuses, thus making room to escape from tax net.
Want to know how to escape from Income Tax raids or tax net. Learn from Karnataka’s Energy Minister D K Shivakumar. Without batting an eyelid, he has told the tax authorities that the cash and valuables seized from New Delhi and Bengaluru during the recent raids did not belong to him. This is because the flats do not belong to him and there is no rental agreement to prove that he had taken these premises on rent.
The New Delhi flat that was raided belongs to the Sharmas of Sharma Transports. They are close associates of DKS. But since they were so close, there was no formal rental agreement. Hence, DKS is free and it is the Sharmas who would have to explain how the cash found its way into the flat.
“The minister has denied any connection with the cash. Since there is no rental agreement, it cannot be established that Shivakumar had taken the flat on rent. In such case, Sharmas will have to answer the source of the cash and why money was kept at home,” sources told the media.
Similarly, nearly Rs 4.5 crore was found in the residence of two businessmen in Bengaluru and Hassan who reportedly have business interests with Shivakumar. Here too the minister has denied that the money belongs to him.
Now, the close associates of the minister would have to do all the answering to the tax officials, not DKS.
It may be recalled that Rs 12.5 crore was seized apart from jewellery, investment sheets and properties termed “unaccounted” by the taxmen during the recent raids. The issue had rocked Parliament. But the minister’s stand could land some of his close aides in a big soup.
His associates who could be in trouble include his extended family members, Sharma Transports, astrologer Dwarakanath, Davanam jewellers, several big and mighty realty players in Bengaluru.
If the associates cannot give proper explanation, the government takes over the entire cash, jewellery and other valuables.
Earlier, the offenders could get away paying 30% levy plus penalty on the amount which the assessee had to pay. But now with amended laws, a penalty of around 138% will be levied — 60% tax, 60% penalty, 15% surcharge and 3% education cess surcharge. If the cash is admitted during the search and if the person is able to substantiate it, the levy is 107.25%.
Either way, the infamous Rs 12.5 crore DKS money would surely come into the I-T department’s kitty.
But for DKS, it is a great escape done with ease.