I-T tightens rules to stop evasion
If you think a little juggling of accounts to evade tax would go unnoticed by the income tax (I-T) department, you are mistaken.Updated: Jun 26, 2011 01:42 IST
If you think a little juggling of accounts to evade tax would go unnoticed by the income tax (I-T) department, you are mistaken. To achieve the Rs1.8 lakh crore tax collection target in Mumbai, I-T officials have been instructed to increase surveys and spot verifications in addition to the search operations conducted by the investigation wing of the department.
In 2010-2011, the target for Mumbai was Rs 1.5 lakh crore while the total tax collection was Rs 1.53 lakh crore.
The all-India tax collection target, set at Rs 5.32 lakh crore, is Rs 86,000 crore more than last year’s target.
Income tax officials said the Central Board of Direct Taxes (CBDT) has designed a comprehensive action plan to facilitate smooth collection. “The plan is in written form and very elaborate,” a senior I-T official said, adding that only verbal guidelines were given earlier.
The CBDT has also instructed the supervisory authority to monitor at least 10 cases being assessed by the assessing officer (AO). “This is to ensure the AO’s efforts towards proper assessment and raising proper tax demands,” the official said.
The department would also continue to keep a watch on high spenders, who spend heavily on shopping, flying on domestic routes and abroad, and extensively use credit cards.
The board has also directed officials to be alert while sending questionnaire to taxpayers with scrutiny notices. “The questionnaire has to be point-to-point and exact, otherwise it doesn't help,” the official said, adding that this is the reason why the board has directed that the questionnaire prepared by the AO will have to be approved by his superior authority, the additional commissioner.
First Published: Jun 26, 2011 01:41 IST