1. Taxman at the door? Narendra Modi wants income tax payer base doubled

Taxman at the door? Narendra Modi wants income tax payer base doubled

Prime Minister Narendra Modi on Thursday told the tax department to raise the number of income tax payers in India from the current 5.43 crore to 10 crore.

By: | New Delhi | Updated: June 17, 2016 7:25 AM
Income Tax Act, Income Tax laws in india, Income Tax payers, Global Energy Limited The income tax department has 42,000 officers, yet only 8% of the revenue comes from scrutiny of returns.

Prime Minister Narendra Modi on Thursday told the tax department to raise the number of income tax payers in India from the current 5.43 crore to 10 crore. He was addressing tax administrators at Rajasva Gyan Sangam, jointly organised by the two revenue wings, the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC), in the Capital.

“Within the country, we have 5.43 crore taxpayers. Of them, 90% are e-filing and 60% of the refunds are issued within 30 days. The PM said we should raise our sights higher. We should make it very easy for people to file taxes and that we should legitimately aspire to achieve 10 crore taxpayers within our tax base. This is in the context of having 25 crore households, of the 125 crore people that we have,” minister of state for finance Jayant Sinha told mediapersons after the PM’s address.

The income tax department has 42,000 officers, yet only 8% of the revenue comes from scrutiny of returns. As much as 92% of direct tax revenue comes from tax deducted at source (TDS) of mostly salaried people, advance taxes and self-assessment taxes.

The prime minister outlined a five-point charter for tax administrators — RAPID: R for revenue, A for accountability, P for probity, I for information, and D for digitisation. He urged the officers to turn Gyan Sangam into Karma Sangam, so that the ideas generated from this conference lead to concrete action on the ground.

Nearly 15 tax officials, five of them assistant commissioners with four-five years of experience, offered their views to Modi. These officials raised several key issues faced by them on field, including whether tax enforcement should be our priority or tax friendly measures. Second, there should be a tax facilitation act. Third, there should be some norms set up for collecting tax from people and that should apply both to central and state governments. And also there came a suggestion that the income tax Act should be in local languages.

Stating that people should not fear tax administrators, PM Modi said at the beginning of the two-day conference, that Indians inherently are honest and asked the taxmen to build a “bridge of trust” so as to achieve tax collection targets without coercion. “You should behave like mentors to people rather than invaders. Don’t presume that every one is a tax evader,” revenue secretary Hasmukh Adhia quoted Modi as saying at the conference.

Highlighting shortcomings in the system, Modi said a query on search engine Google on ‘how to pay taxes in India’ throws up seven crore answers, but a query on ‘how not to pay taxes in India’ gives out 12 crore results.

Gr2

  1. A
    Ashutosh
    Jun 17, 2016 at 7:29 am
    STOP looting the poor and middle cl by taxing Central Excise Duty / Service Tax / Central s Tax / VAT / Octroi / LBT / Entertainment tax / State Excise Duty etc etc and then think of everyone paying their INCOME TAX honestly. Buy anything in the market and almost on an average 50% goes to the Government as taxes - REDUCE that and then collect Income Tax. Look at the DIRECT Vs INDIRECT tax revenue of any other country in the world. Even a beggar is a tax payer in India when he buys a match stick he has paid all of the above taxes. ABOLISH ALL INDIRECT TAXES AND LET EACH AND EVERY CITIZEN PAY INCOME TAX. And see how make in INDIA happens automatically - as all these taxes prevent the business and Industry to grow.
    Reply
    1. K
      Kumar Gupt
      Jun 17, 2016 at 5:39 am
      Let's us not go after the numerical statistical jugglery. Mind you, ends always justify the means and nothing succeeds like success. If the nation truly wishes to honestly tone up its revenue earnings from income tax and other statutory taxes, the relevant tax structure should be so formulated that there is no worthy incentive to evade or avoid them.
      Reply
      1. Murthy Suppusamy
        Jun 17, 2016 at 3:26 am
        10 crore tax payer target on target date?.without a target it makes no sense.
        Reply
        1. Murthy Suppusamy
          Jun 17, 2016 at 3:22 am
          American govt collects tax from 96% of the people who are legally bound by income tax laws. But this 10 crore target makes no sense. Is this a fancy number game? So 10 a fancy number. 10 is when 100 smart cities divided 10. No science, not legally find tax payers, no dice rolled, no om number. 100 smart cities, 100 IITs and 10 crore tax payers. I hope WTO brings new meaningful tax compliance regulations soon.
          Reply
          1. K A Prasanna Ananthamurthy
            Jun 17, 2016 at 3:33 am
            How many politicians who lead lavish life pay income tax honestly?. From where do the politicians get money to fight elections? Most black money in India is held by politicians, businessmen and industrialists who support politicians. Will Modi government book them? And when?.
            Reply
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