Income Tax Department Issues Notices to Senior Executives Earning Over ₹50 Lakh for Exemption Misuse

The department has begun a focused review of high‑earning senior executives, asking them to correct discrepancies in their tax returns before penalties are applied. 

Notices Target High Earning Executives 

As per news reports, Dozens of CEOs, managing directors and other senior leaders drawing annual salaries above ₹50,00,000 have received notices.  

The notices cite undeclared foreign assets, unreported overseas income, under‑stated stock incentives and exaggerated perquisites such as housing and travel allowances.  

Executives from hospitality, information technology, fast moving consumer goods, engineering, construction and automobile sectors are among those mentioned. 

Common Areas of Non-Compliance 

Investigations have uncovered claims of exemptions based on donations to religious, charitable and educational institutions that lack proper documentation.  

More than 24 cases involve expensive property purchases, while over 50 individuals received secondary payments in cryptocurrencies from foreign clients.  

Undisclosed assets also include foreign stocks, overseas bank deposits and properties held in the names of minor children or spouses. 

Read More: Income Tax Department Issues Notices to Business Families for Undisclosed Overseas Assets! 

Data Driven Enforcement Methods 

The department relies on automated exchange programmes, PAN linked tracking and artificial intelligence analytics to match declared income with third party data.  

This approach has flagged inconsistencies between tax deducted at source records and the information supplied in income tax returns. 

Scale of Recent ITR Revisions 

In the current financial year more than 2,1 million taxpayers have updated returns for assessment years 2021‑22 to 2024‑25, paying additional taxes exceeding ₹2,500 crore. Additionally, over 1,5 million returns have already been revised for the ongoing assessment year. 

Conclusion 

The Income Tax Department’s notice campaign reflects a broader push for tighter compliance using data analytics. Senior executives earning above ₹50,00,000 are being asked to file revised returns for undeclared foreign assets, overstated exemptions and other discrepancies. 

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