The Income Tax Department raided at 70 places in eight Indian states for investigation against the charges that were made on former Jharkhand CM and MP for having disproportionate assets, on Saturday.

IT Department Director Ujjal Kumar Chaudhary said that his team is currently probing Madhu Koda and his liaisons Vinod Kumar Sinha and Sanjay Chaudhary for havind disproportionate properties at 70 places of eight cities of the country.

He further added that the search operation is based on the intelligence reports received recently.

The Income Tax Department said that persons receiving gifts either in cash or kind will have to pay tax, if the cost price of gift exceeds Rs 50,000. 

The Central Board of Direct Taxes has said that the norms would be effective from October 1. 

However, it would not be applicable on the gifts given by relatives or on the occasion of marriage. The CBDT also said that there would be no tax on gifts received by way of will, inheritance or in the event of death of the donor.

According to senior Government official, the long waited Direct Tax Code Bill is most likely to come into action by the Monsoon Session of Parliament 2010. The so called bill will replace the taxation system that companies in India have been following for the past fifty years.

At a seminar on Direct Tax Code Bill, Joint Secretary, Ministry of Finance, Arobind Modi said, “We are hoping that by the 2010 monsoon session it should be legislation.”