WHENEVER any discrepancy is left in the Income tax returns or any entry in the bank accounts comes to light, our Income Tax Department without fail issues the notice to the defaulter but the elections to the 15th Lok Sabha has revealed so many lapses in the government machinery is shocking.

With around 68 per cent candidates not furnishing details of their Permanent Account Number (PAN) in the affidavits filed by them in the first round of elections and many of them being crorepatis. It is reported that Income Tax department is likely to take up all such cases for scrutiny to verify if the accumulated wealth had been duly offered for tax.

Fearing disqualification if statements made in the affidavits were to be found untrue when elected, candidates have made astounding declarations with a new record being set every day. So far the highest declaration made by a candidate has exceeded Rs 600 crore while those between Rs 100 crore and Rs 200 crore are in the dozens.

The I-T department is also hoping to reap benefits from the riches of many of these candidates whose wealth has seen astronomical growth in a matter of a few years. Not having PAN or hiding them for evading tax could invite scrutiny as well as penalty and prosecutions in cases were tax evasion is proved. Although the penalty for not having PAN is a meager Rs 10,000, that for tax evasion could be as stiff as between 100% to 300% of the tax evaded. Sources said even those who had shown legitimate wealth would have to pay wealth tax on the current market value of their property at the rate of 1% of the value of the assets, barring those which are in the exempted category under the Wealth Tax Act. Though wealth tax and income tax are not applicable on political parties , a politician is taxed under both categories and is treated as any other taxpayer in the country. It is believed that the percentage of candidates who have not furnished their PAN details is anywhere between 40-70% of the total number of candidates who have filed their nominations in the first three phases of the elections.

A report prepared by independent election watchdog Association of Democratic Reforms based on the analysis of affidavits of candidates, revealed that at least 68% of them had not furnished PAN in the first phase. The figure though came down slightly but was still as high as 40% by the third phase.

The average assets value for 196 candidates in the third phase of elections has been found to be around Rs 2.5 crore, according to ADR. The election watchdog’s report on phase two of LS polls had found congress with highest number of crorepatis at 65, BJP(46) BSP(28) and SP(16) leading the list. In phase 1, 193 crorepatis were in the fray.