Tax gap shoots to Rs 14,684 cr - Hindustan Times
close_game
close_game

Tax gap shoots to Rs 14,684 cr

Hindustan Times | ByDebobrat Ghose, New Delhi
Dec 12, 2010 11:03 PM IST

CAG blames lack of coordination between I-T department and banks.

The county has been losing a big chunk of revenues over the years in the form of income tax from outward remittances by non-residents, despite logging a steady growth in business and foreign investments.

HT Image
HT Image

The Comptroller and Auditor General (CAG) has revealed in its latest report a massive tax gap of Rs 14,684 crore between remittances and tax payments for the financial year 2007-08.

Hindustan Times - your fastest source for breaking news! Read now.

Despite rise of 2.5 times in the quantum of remittances during 2004-08, the tax deduction at source (TDS) collections had dipped during 2005-08.

The tax gap increased by 146% to Rs 14,684 crore in 2007-08 from Rs 5,967 crore in 2003-04.

The CAG has blamed the lack of coordination between the banking sector and tax authorities, and discrepancies in the existing tax administration, for this disparity. "Our computation of the tax gap shows that the tax actually deducted is a miniscule fraction of the collectible tax," CAG said in its report on Friday.

A remitter is required to submit an undertaking and a certificate (C&U), which an authorised dealer (banks) must examine. The report points to the non-reconciliation of C&Us between banks and income tax (I-T) department, which led to non-deduction of Rs 98.7 crore in taxes during 2005-09. Revenue loss

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On