Introduction of new data sources in Statement of Financial Transactions (SFT) has resulted in addition of information of about 30 million persons. The Central Board of Direct Taxes apprised finance minister Nirmala Sitharaman of the development as part of a review meeting on Tuesday.
Efforts for increasing the taxpayer base was one of the issues taken up as part of the review meeting. “The finance minister exhorted CBDT to expand and strengthen its efforts to increase taxpayers’ awareness regarding the provisions of the direct tax laws and compliance thereof,” said the release, adding that she also emphasised that CBDT should ensure timely and appropriate actions on all applications filed by taxpayers and desired a reasonable timeframe for disposal of such applications.
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“Introduction of new data sources in Statement of Financial Transactions (SFT) like dividend and interest; securities; mutual funds and information from GSTN in recent years has led to 1,118% increase in reported information,” said a finance ministry release. SFT helps the income tax department monitor high value transactions.
Further, introduction of new TDS codes has led to a near doubling of unique deductees to 92 million in FY22 from 48 crore in FY 16. New TDS codes have doubled from 36 to 65 in last eight years and led to increase in total reported transaction in FY 2021-22 to 1.44 billion as compared to total reported transaction in FY 2015-16 of 700 million.
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The FM was also apprised of the fact that the Personal Income Tax to GDP ratio has been steadily increasing from 2.11 in FY15 to 2.94 in FY22, the finance ministry said.
The minister also reviewed the pending disciplinary proceeding cases against employees and officers and observed that administrative and procedural delays should be minimised. She also directed CBDT to take prompt action in finalisation of such proceedings.
Disposal of applications for condonation of delay and grant of exemptions under certain sections of the Income Tax Act, 1961 was another issue taken up in the meeting.