Study group on 'voluntary compliance' to counter black money
Amid the growing clamour to crack down on generation of black money, the Finance Ministry has instituted a study group to improve "voluntary compliance" by suggesting appropriate measures to motivate tax evaders to disclose their unaccounted funds.
The study, which will be conducted by economic and tax experts, is also aimed at stopping "commoditisation of tax avoidance schemes". The latest study comes in the backdrop of Finance Minister Pranab Mukherjee's statement that two groups have been constituted to look into different aspects of black money, including a proposed amnesty scheme to unearth unaccounted wealth.
As per the statement of the proposal put forward by the Income Tax Department, "Complexity and innovation in business structures, new financial products, a large number of taxpayers, growth in international trade supported by rapid expansion of e-commerce, commoditisation of tax avoidance schemes are some of the factors leading to increased compliance risk for the tax administration."
"It may not be possible for the Income Tax Department to address these risk factors through the traditional tools based on verification and enforcement action alone," the proposal added. "Tax compliance costs impose a burden on the taxpayers. If the amount is a big percentage of the tax payable, it deters small and medium taxpayers from being a part of the tax system," it said.
As such, "The challenge before the I-T Department is to ascertain the extent of compliance cost for different categories of taxpayers and develop focused programmes to reduce the compliance costs for improving voluntary compliance," the statement said.
"The study group will strategise to increase direct tax collections and suggest measures to curb tax evasion effectively in the changing business scenario, which includes curbing generation of black money," a senior Finance Ministry official said.
The study group, according to the official draft of the Finance Ministry, will undertake a four pronged approach to "better understand compliance issues from the perspective of taxpayers". The group will then make recommendations with respect to the operational decision-making process on the basis of views expressed by affected parties, as well as facilitate participation in the tax system by all segments of taxable citizens.
In addition, it will study the barriers to compliance as an ongoing programme and the compliance cost with respect to different categories of taxpayers on a periodic basis.
A man was killed and six others were injured when the Himachal Pradesh Transport Corporation bus they were travelling in was hit by boulders near Sach Pass in Chamba district on Sunday. The bus was on its way from Killar, the administrative headquarters of Pangi valley to Chamba. A Bolero, a pick up jeep and canter were also damaged. Tissa sub-divisional magistrate Girish Sumra said rescue teams were rushed to the spot with two ambulances.
There has been an uptick in coronavirus cases amid heavy tourist influx in Himachal Pradesh, prompting health authorities to issue directions to ramp up testing across the hill state. As many as 289 new infections were recorded over the last week, surpassing the Covid count for May (248). The state had 50 active cases in May-end, which has increased to 292.
Himachal Pradesh chief minister Jai Ram Thakur on Sunday announced that a special task force will be constituted to wage war on drugs in the hill state. The CM announced that 73 posts for police personnel will be created and filled in the excise department for effective implementation of regulatory legislations. He also initiated the process for forming an excise police force.
It is possible to travel by staying still. One way to do this is by lingering long at the Jama Masjid in Gurugram's Sadar Bazar. The small edifice isn't close in grandeur to its more famous namesake in Old Delhi. But being here towards the end of the day, as the amber shade of dusk slowly turns into darkness, this enclosed but open space fills the visitor with a sense of journey.
On the occasion of International Day Against Drugs, a kabaddi tournament was organised in the North East Division by the police on Sunday. A total of 15 teams from the city participated in the event, which saw around 5,000 people of the area in the attendance. The municipal corporation and the Chandigarh Pollution Control Committee have joined hands to check on violations and a special task force will conduct surveys and issue challans to violators.