| Sahara defends cash deals, blames Sebi for refund delay |
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BS REPORTER Mumbai, 12 February Aday after the Supreme Court asked how Sahara refunded ₹ 20,000 crore in cash to investors, the group said on Wednesday such large- scale dealings were possible with its vast network of branches. Claiming its cash transactions were based on a " strict, convenient, safe and costeffective policy," the group blamed the Securities and Exchange Board of India ( Sebi) for delaying the refund to investors. Sahara said Sebi had not initiated verification of even one of the 30 million investors in the past 17 months and avoided reporting the valuation of asset details submitted by the group. It welcomed the courts direction to Sebi to come out with the valuation report. The Supreme Court had made the observations after Sebi said the group had not furnished any bank statements to support the refunds to investors. In a statement, Sahara said it had put in place the cash policy after hundreds of cases of " snatching, robberies, injuries" and even death faced by its workers while carrying money between branches and banks. Sahara said the regulator "does not want to understand the spread of our network into 4,700 centres" and the average daily payment at each branch of about ₹ 2.5 lakh. The case relates to the refund of over ₹ 24,000 crore to investors by two Sahara firms through Sebi. Sahara deposited ₹ 5,120 crore with Sebi and claimed more than ₹ 20,000 crore was returned directly to investors who had subscribed to bonds issued by the two firms. In the past 17 months, Sebi has repaid about ₹ 70 lakh out of the ₹ 5,120 crore deposited. Pointing out that the image and credibility of Sahara, where 1.2 million families earn their livelihood, have been "severely affected", the group said most of its investors were small and the average bond investment amount was ₹ 8,000. It claimed almost 98 per cent of its investors had put in amounts ranging from ₹ 500 to ₹ 19,000. Sahara said Sebi had not initiated verification of even one of the 30 million investors in the past 17 months Sahara chief Subrata Roy |
| YOUR MONEY
Shifting your house isn't enough; it is your duty to ensure this is updated in your PAN card details Respond to I- T notice promptly |
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Change of address is no excuse; you have a duty to update the local tax office; the address is linked to your PAN card. This can be done by filling an application form for changing the PAN details, at the nearest NSDL TIN facilitation centre. If not having filed or responded to a notice, you have to prove the reasons for doing so were genuine. For instance, you might have earned interest on your bank deposits or got a cash gift from a non- relative. The notice could be for not disclosing this. If you dont pay tax even after the notice, prosecution proceedings can be initiated against you. Prison is possible, though this is the final step by the I- T authorities. Last week, the Supreme Court reiterated the onus in such cases is on the tax payer, to prove innocence in case of noncompliance. The apex court also said in the case of a a company, the partners or directors will be prosecuted. The court will assume you have concealed the income wilfully; you have to prove to the tax authorities first, and then to the court, that you did not wilfully conceal the income. Amarpal Chadha, partner, tax and regulatory services at Ernst & Young, says if prosecution is initiated against an individual, the court shall presume the existence of a culpable mental state intention or knowledge but he/ she will get a chance to defend onself. Proving your innocence can be tricky. Some of the reasonable grounds could be medical reasons or being away when the notice was served, says Sanjeev Gokhale, a tax consultant. " If the matter reaches the court, you will have to show documentary proof like hospital bills in the case of medical reasons. Or some corroborating evidence to prove you were out of town, he says. Not knowing the law is not a valid reason for not disclosing income, says Arvind Rao, a Mumbai- based chartered accountant. For instance, in the case of bank fixed deposits, in addition to the 10 per cent tax deduction at source by the bank, tax payers should add the interest to their income and pay the balance tax on the applicable slab. Many dont do this because they are not aware. However, ignorance of law does not excuse you from being prosecuted or penalised. If the I- T department levies a penalty, it can be up to 100 per cent of the amount in question, says Rao. PRIYA NAIR |
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