Income tax department sets plan to boost revenues
The income tax department (ITD) has drawn up a long-term plan to boost direct tax revenues, aiming for a single-window system for taxpayers to prevent tax evasion as it aims to hit the 2014-15 target of nearly Rs 8,30,000 crore set by the Thirteenth Finance Commission.
The income tax department (ITD) has drawn up a long-term plan to boost direct tax revenues, aiming for a single-window system for taxpayers to prevent tax evasion as it aims to hit the 2014-15 target of nearly Rs 8,30,000 crore set by the Thirteenth Finance Commission. Gearing for more
The measures in its “Vision 2020” document unveiled this week envisage a revenue forecasting model that would identify the base of taxpayers and widen it to tap revenue opportunities.
Direct taxes have grown at an average annual rate of 24% in the past five years and needs to sustain this in order to keep government deficits under check and to fund spending plans that fuel growth.
The government plans to set up an expert group by the end of the current fiscal year to move towards a forecasting model, the document said.
The department, which is currently probing a host of high-profile financial irregularities including overseas transactions, stresses on a robust criminal investigation system to check fund flows that could harm national security.
It calls for keeping tabs on money laundering, narcotics and terror and to ensure exemplary enforcement against abusive schemes and corporate tax frauds. The document also wants steps to end unproductive litigation that saps the department’s resources.
