September 27, 2015
New Delhi: Those earning `4 lakh per annum, besides people in tier-II and tier-III cities with taxable income but not paying taxes are on the radar of the income tax (I-T) department, which has launched an ambitious drive to net one crore new assesses this financial year.
September 27, 2015
New Delhi: Those earning `4 lakh per annum, besides people in tier-II and tier-III cities with taxable income but not paying taxes are on the radar of the income tax (I-T) department, which has launched an ambitious drive to net one crore new assesses this financial year.
The Central Board of Direct Taxes (CBDT), the top policy making body of the I-T department, feels if more and more people pay their due taxes, the income tax burden of those already compliant could be gradually eased.
“We want that at least people who are earning taxable income, let them start filing returns. Because, even small payment of tax by a large number of people is a favorable thing and this currently constitutes our tax gap. As far as our understanding goes, after the studies which we got conducted, people who are not filing returns are people who are earning income of about `4 lakh (per year). They are the ones who are missing from over records as filers.
“Then we have people who are filing returns but they are understating their income. Our approach to them was different but now what we are talking about those small taxpayers in the tier-II and tier-III cities who have small income but they have taxable income. There are about 18-20% people in this bracket who are missing,” CBDT chairperson Anita Kapur told the Press Trust of India in an interview.
She said the taxman has begun approaching markets and resident welfare associations in large cities to convey the message that they should be paying proper taxes.
“We got a feedback that people living in posh areas, where the property prices are certainly for a category which should be on the tax net, they are not filing returns. We are asking RWAs that please tell your residents that you have a liability (to pay income tax), so you should pay taxes and that it is so easy to pay taxes,” Kapur said.
The CBDT chief said if these small taxpayers also come into the system, it would give the government “leeway” to reduce overall taxes and also lessen individual income tax.
“So, if these assesses, who are in large numbers, start paying, may be their taxes are small but even that small amount bolsters the revenue. So, once you get better tax compliance from a larger population you have the leeway to reduce the taxes. The finance minister has also said that,” she said.
Courtesy: PTI
