18
Sunday
August 2019
6:25 AM IST
News Headlines
Deepa Malik joins Bajrang for Khel Ratna, cricketer Jadeja among 19 for Arjuna        Mary Kom recuses herself from Saturday's sports award meeting        Trump says Apple will spend 'vast sums' in US        Coffee Day Enterprises says debt to fall to Rs 1,000 cr post sale of Bengaluru tech park        Modi arrives in Bhutan on two-day visit        Hong Kong protest tensions heat up in Australia        Separatists vacate key offices in Yemen's Aden: Minister        Fire at AIIMS, 22 fire tenders rushed        Soldier killed in Pak firing along LoC in J-K's Rajouri        Jaitley on life support; Nitish, Piyush Goyal and others visit AIIMS        Ravi Shastri reappointed head coach of Indian team till 2021        Archer strikes as Australia slump to 80-4 in second Ashes Test        Hong Kong protests: Trump urges Xi to meet pro-democracy demonstrators        Myanmar, Bangladesh schedule Rohingya repatriation        2 Israelis, Palestinian assailant hurt in West Bank car ramming: army        Sensex, Nifty edge higher on stimulus talks; post weekly loss        Over 3,000 temporary jobs cut due to slowdown: Maruti Suzuki        Airtel shareholders approve waiver in recovery of excess pay to Mittal        Kashmir remains shut for 12th consecutive day        We would like to give little time: SC on plea seeking removal of restrictions on media in J-K        
Home   | Main News   | Kerala  | National   | International  | Business   | Sports   | Entertainment   | Columns   | Offbeat   | Health   | About Deepika 
Business News
Sitharaman asks taxmen to deal firmly with evaders
 
New Delhi, Jul 24 (PTI) Finance Minister Nirmala Sitharaman on Wednesday asked taxmen to firmly deal with those who try to evade taxes and game the system but act as facilitators to those who want to pay taxes honestly.

While she stressed that taxpayers should treat tax payment as contribution towards nation building and not as punishment, the minister asked three investigating wings of the revenue department to share information among themselves to nab evaders.

Addressing officers at the Income Tax Day celebration here, Sitharaman said that efforts should be made to increase the tax base from 8 crore currently as desired by Prime Minister Narendra Modi.

She also said that the direct tax collection target of Rs 13.35 lakh crore for 2019-20 set in Budget was achievable, as the tax department has doubled the collection in the last five years.

"...Those gaming the system are the ones you (taxmen) have to keep a watch on... data mining, big data usage are all instruments in your hand to understand where the wrongdoing is happening and I am with you if you are firm on those people. I am fully with you if you are really firm on gaming," she said.

She said if the assessees are not avoiding and evading taxes, then the taxmen owe the assessees good service.

"If avoidance and evasion are two things in your mind, 'a' and 'e', of the 5 vowels,.... then the other 3 letters comes into play -- 'i', 'o', 'u'. No avoidance and evasion, then you owe the assessee a good service, facilitation," she said.

She said the three enforcement wings of the revenue department -- the Income Tax, the Enforcement Directorate and Directorate of Revenue Intelligence -- should share the information about assessees base and profile of assessee for better coordination in an investigation.

"If only these three (wings) shared the information about an assessee, you would have no businesses but to send an electronic claim, money is going to reach you. The whole business is about trust with the person who is paying the tax, who is helping build the country, and you are facilitating the process. It should strictly be as simple as that.

"It's about having right information about people and better trust between you and assessee. And if only that kind of understanding exists between assessee and you, there is no need to put in extra effort to address issues of avoidance and evasion," Sitharaman said.

Explaining the rationale for higher taxes being imposed on individuals who earn more, the minister said tax is not collected as a punishment, but with the intent that those who earn a lot if they can contribute more towards nation building.

"We are not punishing those who are earning, we need tax because we want to have greater, better, ... income or resource distribution," she explained.

"The nation takes that tax more because we want to redistribute it for people who have not been so able to make that kind of an earning for themselves," she said further.

The larger principle of taxation is that the government is not here to bring in something which is going to be too much on the shoulder the rich, the minister said.

"Yes we need that money ... would you help us to redistribute some (higher earning) for those who are less fortunate. So if that broader spirit is understood, the income tax officers will not be looked at as: 'Oh my God, I don't want anybody from the department come near me'".

In 2019-20 Budget, the government had increased surcharge from 15 per cent to 25 per cent on those with taxable income between Rs 2-5 crore and from 15 per cent to 37 per cent for income above Rs 5 crore.

Following the increase, the effective income tax rate for individuals with a taxable income of Rs 2-5 crore will go up from 35.88 per cent to 39 per cent and for those above Rs 5 crore it would go up to 42.7 per cent.

Sitharaman also asked the tax officials to be sensitive, despite on a regular basis, dealing with people who are avoiding paying taxes and are gaming the system.

"I would still say, it is possible for you today because there is so much available in terms of data, big data. If the three departments among yourself share the information, you would be better enabled to become facilitator of taxpayer. I wouldn't think it is impossible to maintain the sensitivity... So the larger message of what the Prime Minister feels that we should be seen as facilitator, we want the income (tax) but we should clearly not be on a over-drive," she said.

Sitharaman said the Budget 2019-20 has set a "very easy target" of direct tax collection in current fiscal.

"If in the last five years, you could double, what we have given you this year is nothing at all. So somewhere between Rs 11.8 lakh crore to slightly over Rs 13 lakh crore is no big deal at all. You have not been given a big target... The target given to the direct taxation people are imminently achievable, we are all here to facilitate it and with that, next year we can all sit and have a higher target," she said.


Trump says Apple will spend 'vast sums' in US
Coffee Day Enterprises says debt to fall to Rs 1,000 cr post sale of Bengaluru tech park
Sensex, Nifty edge higher on stimulus talks; post weekly loss
Over 3,000 temporary jobs cut due to slowdown: Maruti Suzuki
Airtel shareholders approve waiver in recovery of excess pay to Mittal
Rupee slips 12 paise to 70.93 vs USD in early trade
Gaana looking to break-even in next 4-5 years
Rupee suffers biggest slump in 6 yrs; closes at 4-mth low of 70.73 on yuan shock
Sensex tanks over 418 points amid Kashmir uncertainty
Law which allowed circulation of Rs 1000 notes in 1999 scrapped
JM Financial arm to raise up to Rs 500 cr
RBI imposes Rs 50 lakh fine on SBI
Trump warns China of substantial increase in import tariffs
RBI imposes Rs 11 cr fine on seven PSBs for violating norms
NTPC chief for setting up of clean power projects without PPAs
Gold prices up marginally; silver tumbles by Rs 590 per kg
D K Mohanty assumes charge as RINL's director
JSPL supplies 1.26 LT rails to Indian Railways
Fiscal deficit touches Rs 4.32 lakh crore in Q1
CBI books Rolls Royce in corruption case
KERALA NEWS
Flood in Kerala: CM conducts aerial survey
 Kochi: Kerala Chief Minister Pinarayi Vijayan along with his ministers and government officials carr  
Kerala rains: Toll climbs to 88, 40 still missing
Red Alert in Alappuzha, Ernakulam and Idukki
Singer Biju Narayanan's wife passes away
INTERNATIONAL NEWS
Modi arrives in Bhutan on two-day visit
 Paro: Prime Minister Narendra Modi received a red-carpet welcome as he arrived in Bhutan on Saturday
Hong Kong protest tensions heat up in Australia
Separatists vacate key offices in Yemen's Aden: Minister
Hong Kong protests: Trump urges Xi to meet pro-democracy demonstrators
NATIONAL NEWS
Fire at AIIMS, 22 fire tenders rushed
 New Delhi: A fire broke out at the AIIMS here on Saturday evening and 22 fire tenders were rushed to
Soldier killed in Pak firing along LoC in J-K's Rajouri
Kashmir remains shut for 12th consecutive day
We would like to give little time: SC on plea seeking removal of restrictions on media in J-K
Untitled Page
Rashtra Deepika LTD
Copyright @ 2019 , Rashtra Deepika Ltd.