Circumstances in which the Informant is not eligible for any reward

Ans. No reward shall be granted to an informant under the following circumstances:

a. Where the information is not provided in accordance with the scheme;

b. Where the terms and conditions of the scheme are not fulfilled;

c. Where the information given is not of substantial tax evasion;

d. Where the information given is vague/non-specific and/or of general nature;

e. Where the information given is already available with the Income Tax Department;

f. Where the information is not received directly from the Informant but through any organisation other than Income Tax Department;

g. Where additional taxes on the undisclosed income detected are not directly attributable to the information given by the Informant;

h. Where Income Tax Department has evidence that the information given by the Informant has been shared by him or any other person authorised by him, with any other entity/agency, including media; or

i. In respect of incidental or collateral benefit which may arise to revenue in any other case as a result of the information furnished by the Informant.

The following are some illustrative situations in which Informant will not be entitled to reward:

a. In a case where an informant has furnished information pertaining to modus operandi only without any specific information regarding parties involved/assets generated/transactions entered, etc. and pursuant to such information, the investigation conducted by Investigation Directorate leads to detection of undisclosed income, the Informant will not be eligible for any reward for the information even if the modus operandi is found to be correct;

b. In a case where an informant has furnished specific information pertaining to bogus expenses/purchase or modus operandi or income or assets, etc., in respect of some persons and pursuant to such information, the investigation conducted by Investigation Directorate leads to the detection of bogus expense/purchase or modus operandi or income or assets etc. in respect of additional persons also, the Informant will not be eligible for any reward in respect of the bogus expense/purchase or modus operandi or income or assets etc. of the additional persons, irrespective of the fact that the Informant had explained the modus operandi etc.

c. In a case where search & seizure has been conducted, and additional taxes have been levied and realised, but such additional taxes are not directly attributable to the information provided by the Informant.

d. In a case where an informant has furnished specific information pertaining to undisclosed assets and pursuant to such information, the investigation conducted by Investigation Directorate does not lead to the detection of the undisclosed assets in respect of which the information was furnished, the Informant will not be eligible for any reward even if any other undisclosed asset was detected in the investigation and the Informant had explained the modus operandi.

e. In a case where an informant has furnished specific information pertaining to some undisclosed assets and pursuant to such information, the investigation conducted by Investigation Directorate leads to the detection of some undisclosed assets in addition to those informed by him, the Informant will not be eligible for any reward in respect of the additional undisclosed assets detected, even if the Informant had explained the modus operandi.