Tax raids based on unsubstantiated rumours or simply suspicion will be legit after the government's tweaks to the Income Tax law. But the changes will be effective retrospectively in an apparent turnaround by the government despite its promise not to do so. The amendment to Section 132 of the Income Tax Act dealing with searches by taxmen says that a raid can be authorized if there is "reason to believe" or "reason to suspect" that a person is hiding his wealth and skipping taxes.
