As Ajay Devgn’s Raid 2 releases, an ex IRS officer explains how a real ‘raid’ works
With Raid 2, starring Ajay Devgn, now in theatres, many are curious about how real-life income tax raids unfold. The film, a sequel to the 2018 hit Raid, follows an IRS officer uncovering black money. However, a retired Indian Revenue Service (IRS) officer sheds light on how actual tax raids differ from the dramatic portrayals in Bollywood.
The Real Objective: Uncovering Unaccounted Wealth
Unlike the fast-paced action in films, tax raids focus on gathering evidence of unreported income or hidden assets. “In reality, raids are a final step. They follow months, if not years, of investigation,” the ex-IRS officer explains.
The primary goal is to locate undeclared assets such as cash, jewelry, and other financial records that could prove tax evasion.
Who Can Be Raided?
Income tax raids are not random. They target individuals or businesses with a history of suspicious financial activities. The department bases its decisions on various sources:
- Reports from investigation wings
- Data from enforcement agencies
- Inconsistencies in tax filings
- Anonymous whistleblowers
High-net-worth individuals, real estate developers, jewelers, and large corporations are common targets.
How Are Income Tax Raids Planned?
The planning stage is crucial for a successful raid. “Secrecy is paramount. Only the top officials know the full details until the operation begins,” says the officer.
Once the raid is approved—usually by the Director General of Income Tax (Investigation)—a team is assembled. This includes officers, IT specialists, and police support, all of whom are dispatched simultaneously to different locations associated with the target.
Legal Basis: Tax Raids are Legal and Well-Regulated
Raids are not conducted on a whim. Officers must follow strict legal guidelines. Section 132 of the Income Tax Act gives officials the authority to:
- Search premises
- Seize unreported cash, assets, and documents
- Detain records related to financial transactions
“The officers must have a valid reason to believe tax evasion has occurred before a raid can take place,” the ex-IRS officer stresses.
What Happens During a Raid?
A real income tax raid follows a meticulous process:
- Entry and Identification: Officers enter early in the morning, show their identification, and involve two independent witnesses.
- The Search: The entire premises are searched for unaccounted assets, including cash and important documents.
- Interrogation: Officers question the subject, family members, or staff present.
- Seizing Electronic Evidence: Laptops, phones, and storage devices are often taken for analysis by IT experts.
- Duration: While some raids last 24 hours, others can extend for several days.
“Raids are exhausting for everyone involved. Officers work in shifts, and the process can be long and stressful,” the officer notes.
What Happens After a Raid?
Following a raid, the evidence collected is carefully analyzed. If it confirms tax evasion, the following actions may occur:
- The individual may face penalties and higher taxes
- Properties and assets might be seized or frozen
- Legal action or criminal charges could be filed
However, if the subject can explain the source of the assets, the case might be closed without further consequences.
Do Real Tax Raids Recover Big Money?
Some raids uncover crores of unreported cash or valuable assets. In contrast, others yield only minor findings. Even when raids uncover large sums, recovery is a lengthy process. Often, the seized assets are subject to lengthy legal battles.
“While recovery is possible, it’s not always guaranteed. It can take months or years for legal proceedings to conclude,” explains the ex-IRS officer.
The Bollywood Factor: Reel vs Real
Ajay Devgn’s portrayal of an idealistic IRS officer has sparked widespread interest in income tax raids. “Movies add an element of excitement, but the real process is slower and more methodical,” the officer admits. “They are not as dramatic as depicted on-screen.”
Still, films like Raid and Raid 2 play a crucial role in educating the public about the importance of tax compliance.
