रोख व्यवहारांवर २ लाखांची मर्यादा

नवी दिल्ली : केंद्रीय वित्तमंत्री अरुण जेटली यांनी १ फेब्रुवारी रोजी सादर केलेल्या मूळ अर्थसंकल्पातील तरतुदीत सुधारणा करून रोखीच्या व्यवहारांवर तीन लाखांऐवजी दोन लाख रुपयांची कमाल मर्यादा घालण्याचा नवा प्रस्ताव सरकारने लोकसभेत मांडला आहे.

अर्थसंकल्पासोबत मांडलेल्या मूळ वित्त विधेयकात निरनिराळ्या प्रकारच्या तब्बल ४० दुरुस्त्या प्रस्तावित करणारे विधेयक जेटली यांनी मंगळवारी लोकसभेत मांडले. विरोधकांनी अशा प्रकारे विविध दुरुस्त्यांची मोट बांधून एकच सुधारणा विधेयक मांडणयास विरोध केला. मात्र, लोकसभा अध्यक्ष सुमित्रा महाजन यांनी विरोधकांनी उपस्थित केलेले तांत्रिक आक्षेप अमान्य केले आणि वित्तमंत्र्यांनी सुधारित वित्त विधेयक मांडण्यास अनुमती दिली.

या ४० दुरुस्त्यांपैकी एक दुरुस्ती रोखीच्या व्यवहारांवर कमाल मर्यादा घालण्याशी संबंधित आहे. मूळ वित्त विधेयकात ही मर्यादा तीन लाख रुपयांची प्रस्तावित करण्यात आली होती. आता ही दोन लाख रुपयांची करण्याचे प्रस्तावित आहे. या सुधारित मर्यादेचा भंग करून जेवढ्या जास्त रकमेचा रोखीचा व्यवहार केला जाईल, तेवढाच दंड आकारण्याची तरतूद यात आहे, असे महसूल सचिव हसमुख अढिया यांनी टिष्ट्वट करून स्पष्ट केले.

हे सुधारित वित्त विधेयक संसदेत मंजूर झाल्यावर, रोखीच्या व्यवहारांवरील दोन लाख रुपयांची कमाल मर्यादा येत्या १ एप्रिलपासून लागू होईल.

या ४० दुरुस्त्यांमध्ये कंपनी कायदा, कर्मचारी भविष्य निर्वाह निधी कायदा, परकीय चलन नियमन कायदा, 'ट्राय' कायदा व माहिती तंत्रज्ञान कायदा अशा विविध कायद्यांमध्येही काही सुधारणा करण्याची तरतूद आहे. याचा वित्त विधेयकाशी काही संबंध नाही. या दुरुस्त्याही वित्त विधेयकात घुसडून सरकार त्या 'मनी बिल' म्हणून मागच्या दरवाज्याने मंजूर करून घेऊ पाहात आहे, असा आक्षेप तृणमूल काँग्रेस, बिजू जनता दल व क्रांतिकारी समाजवादी पक्ष यासारख्या विरोधी पक्षांच्या सदस्यांनी घेतला. (लोकमत न्यूज नेटवर्क)

Aadhaar must to file I-T returns and apply for PAN card; cap on cash transaction lowered to Rs 2 lakh

The government decided on Tuesday tofrom Rs 3 lakh to Rs 2 lakh, and make Aadhaar number mandatory for filing income tax returns and applying for a PAN card.

The decisions were part of amendments moved to the finance bill, which puts into effect the Budget proposals.

The had proposed cash transactions of more than Rs 3 lakh value be banned but the finance bill tabled on Tuesday lowers the ceiling, said revenue secretary, Hasmukh Adhia.

"The difference between demonetisation and this is that the former is used to destroy the stock of black money while the ban will prevent the future flow of black money.

This limit will also reduce the quantum of cash transactions in the economy" Adhia had told HT.

To ensure a deterrent, the penalty for violation is equivalent to the amount transacted.

The amendments also make Aadhaar must for tax returns and PAN applications beginning July 1. Aadhaar enrolment number while filing ITR could also be accepted. Failing to declare Aadhaar may lead to PAN being deemed invalid.

The move is likely to roil activists who say the Aadhaar programme - the enrolment to a national database with biometric information such as fingerprints and iris scans - is meant to be voluntary, as declared by the SC in September last year.

"Aadhaar has been optional for ITR for a few years. The challenge will be for foreign nationals who pay taxes in India. We will have to see the amendment to understand its implications," said Kuldip Kumar, leader, personal tax at PwC India. The amendment, however, says the government will specify exemptions for mandatory Aadhaar rule.

The finance bill carries an unprecedented 40 amendments, according to PTI, and will also impact other laws such as RBI act and representation of people act. Political parties hit out at the tweaks, saying they were being done as 'backdoor entry'.

The finance bill is classified as a money bill, which does not require bicameral approval and can be approved by the Lok Sabha alone where Prime Minister Narendra Modi's BJP has a majority.

The limit on cash transactions is in keeping with recommendations of the Special Investigation Team (SIT) on black money.

In addition to this limit, the Income Tax Act prohibits making or accepting payment of an advance of Rs 20,000 or more in cash for purchase of immovable property. PAN is also mandatory for any purchase of above Rs 1 lakh.

Pay income tax, apply for PAN using mobile app soon

New Delhi:In step with government's digital India drive, the Income Tax department is developing an app that will soon allow assessees to pay taxes or apply for PAN using smartphones.

Finance Minister Arun Jaitley

The department is also working on a project to issue PAN to assessees within minutes by way of e-KYC authentication using Aadhaar, a move that will help bring more people under the tax net by making it easier for people to get Permanent Account Numbers.

"The app concept is at a preliminary stage. The app will enable assessees to pay taxes online, apply for PAN or track tax returns. Pilot project will be undertaken after getting approval from the Finance Ministry," an official said.

Aadhaar-based e-KYC facility would allow individuals or entities wanting to apply for PAN to verify details such as date of birth or address by way of biometric identification using thumb impressions.

So far, more than 111 crore Aadhar numbers have been issued. The unique identification number is being used for getting a new SIM card, for opening bank accounts, transfer of subsidies and also for biometric based digital payments under Aadhaar Enabled Payment System.

As per the government estimate, every year 2.5 crore people across the country apply for PAN cards. There are currently more than 25 crore PAN cardholders in the country.

Government has made PAN quoting mandatory for cash withdrawals of Rs 50,000 and cash purchase of above Rs 2 lakh.

Beginning January 1, the tax department has started issuing newly designed PAN cards that have added security features to make them tamper-proof and with contents written in both Hindi and English.

PTI

10 Transactions that will be reported to the IT department

The Central Board of Direct Taxes (CBDT) made it mandatory for a banking company or a cooperative bank to report high value transactions. The CBDT has also set up an e-platform for the purpose of effecting such reporting. The following transactions will be reported as per the latest notification from the tax department. 

1. Banks have to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account and fixed deposit) of a person. 
2. Fixed deposits other than renewals of a person aggregating to Rs 10 lakh or more of a person in a financial year have to be also reported.
3. Cash payments of Rs 1 lakh or more for credit card bills have to be reported. Also to be reported is payment of Rs 10 lakh or more made by any mode (including cheque or wire transfer) to settle credit card dues in a financial year.
4. The tax department also reiterated its November 2016 instruction asking banks to report all cash deposits of Rs 2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016.
5. For current accounts, banks have to report deposits of Rs 12.5 lakh or more during the period. After demonetisation of old 500 and 1,000 rupee notes, the government had allowed the junked currency to be deposited in bank accounts during a 50-day window ending December 30, 2016.
6. Cash deposits during April 1, 2016, to November 9, 2016 in any account that are reportable should also be intimated to the tax authorities by January 31, 2017, the notification said.
7. Companies or institutions have to report receipt from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures.
8. A similar limit is also set for reporting purchase of mutual funds units or buyback of shares.
9. Purchase of foreign exchange including travellers cheque and a forex card aggregating to Rs 10 lakh will have to be reported to tax authorities.
10. Property registrars will have to report to tax authorities purchase or sale by any person of immovable property for an amount of Rs 30 lakh or more

I-T dept cautions taxpayers against sharing user ID, password

New Delhi: The Income Tax Department has warned taxpayers against sharing their user ID and password with any unauthorised person, saying they too will be liable to face consequences for misuse of their confidential information.

Sushil Chandra Chairman of CBDT, the nodal national agency responsible for administering Income Tax department.

In an advisory to taxpayers, the department's TDS (Tax Deducted at Source) Centralised Processing Cell (CPC) told assessees that their "user ID and password are the most sensitive information, misuse of which can lead to tampering of confidential TDS-related information, your own sensitive data and deductee-related confidential information".

It further said that "if a password is hacked or stolen, it can result in information security breach, leading to undesirable consequences, including privacy violations".

It asked taxpayers to exercise caution in use of log-in credentials at TRACES, which should not be disclosed to any unintended or unauthorised individual. "If shared, the person using login credentials shall also be liable to consequences," it added.

TDS Reconciliation Analysis and Correction Enabling System (TRACES) helps easy filing of tax deducted at source (TDS) or tax collected at source (TCS) correction statements by deductors/collectors and related functionalities.

The taxman asked users to secure their password with at least eight characters in length and a combination of lower case, upper case, numeric and special characters.

"Do not write your password on notepads or the whiteboard at your desk," it cautioned.

"Keeping sensitive information such as passwords in e-mails, folders and files in the computer can be risky. If the e-mail or computer account is hacked, then the perpetrator could misuse the passwords, steal money from your bank accounts, misuse your e-mail account or credit/debit card to access sensitive information from your machine," it said.

It has also asked users not to use the same password for different accounts. "Using the same password for more than one account is similar to carrying one key that unlock your house, car, office and safety deposit box. One lost key could let a mischievous unauthorised user unlock all doors," the department warned.

It went on to advise against sharing log-in credentials as also using the login credentials of any person other than the authorised one appointed by the deductor for carrying out any activity on TRACES.

"You are requested to similarly treat Digital Signature Certificate with utmost security, as the user ID and password on TRACES," it said.

PTI

Deposits by individuals,entities to be dealt as per law: Finance Ministry

Finance Minister Arun Jaitley.

New Delhi: Finance Ministry today clarified that old currency deposits in bank accounts by any entity will be monitored and each case will be dealt as per law applicable in that case.

Amid reports that deposits by political parties is exempted from Income Tax, a Finance Ministry spokesperson said, "Any individual, or anybody including political parties, organisation can deposit any amount of old currency notes in their respective accounts but that does not mean it would be exempted for Income Tax Act automatically. Each case will be dealt as per law applicable in that case".

PTI

No New Exemption to Political Parties from Income Tax: Arun Jaitley

As controversy arose over the Income Tax Act provision about granting exemption from income tax to political parties, finance minister Arun Jaitley issued a statement on Saturday night clarifying that this provision is 35-year-old. Following is the text of his statement:

“Political parties have not been granted any exemption post demonetisation and introduction of Taxation Laws (Second Amendment) Act, 2016 which came into force on 15th December, 2016.

Income & Donations of political parties fall under the purview of Section 13A of the Income Tax Act 1961 & there is no change in its provisions. In this era of instant outrage, a 35-year-old law is presented as a new law being passed by the NDA Government.

I implore all journalist friends to be fully outraged against any step of the government, if it is not against corruption. But in equal measure, I would also implore them to do adequate research before jumping the gun.

Under Section 13A of IT Act 1961, Political parties have to submit audited accounts, income & expenditure details and balance sheets.

Post demonetisation, no political party can accept donations in 500 and 1000 rupee notes since they were rendered illegal tenders. Any party doing so would be in violation of law.

Just like anyone else, political parties can also deposit their cash held in the old currency in banks till the 30th of December provided they can satisfactorily explain the source of income and their books of accounts reflect the entries prior to 8 November.

If there is any discrepancy in the books or records of political parties, they are as liable to be questioned by the Income Tax authorities as is anyone else. They enjoy no immunity whatsoever.

There is no question of sparing anyone, and the political class is no exception. In fact PM Modi is setting a new example of propriety in public life, by asking all MPs & MLAs of BJP to submit their bank account details post demonetization. We would like to urge the other parties to do the same and prove their intentions against corruption.”

Source: business-standard 

CBDT warns of penal action if ITR ‘drastically’ changed

New Delhi: In a stern warning to assesses trying to misuse the provision of revising I-T returns, CBDT today said those "drastically" altering the forms to revise income will face scrutiny and penal action.

Sushil Chandra Chairman of CBDT, the nodal national agency responsible for administering Income Tax department.

It said that post demonetisation announced on November 8, some taxpayers may misuse this provision to revise the return filed by them for the earlier assessment year for manipulating income with an intention to show the current year's undisclosed earnings in the earlier filing.

"The provision to file a revised return... Has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income," CBDT said in a statement.

The Central Board of Direct Taxes (CBDT), the policy making body of the income tax department, further said if the department notices any manipulation in income in previous year's ITR (income tax return), it will conduct scrutiny.

"Any instance coming to the notice of the I-T department which reflects manipulation in the amount of income, cash-in-hand, profits etc and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty and prosecution in appropriate cases as per provision of law," it said.

Under the Section 139(5) of the I-T Act, a revised ITR can only be filed if any person who has filed a return discovers any omission or any wrong statement therein.

PTI

CBDT warns of penal action for any drastic revision in ITR

New Delhi: In a bid to prevent laundering of black money, the tax department today warned of penal action against those filing "drastically" revised income tax returns by including bank deposits made post-demonetisation.

Sushil Chandra CBDT Chairman

After the November 8 abrupt demonetisation announcement, the government had allowed depositing of scrapped 500 and 1000 rupee notes in bank accounts.

But a provision of the income tax act that allows assessees to file a revised return or declaration of income for previous years is being misused by some to include the hereto undeclared wealth and escape by paying a maximum of 30 per cent tax instead of 50 per cent of total on such deposits.

"The provision to file a revised return... Has been stipulated for revising any omission or wrong statement made in the original return of income and not for resorting to make changes in the income initially declared so as to drastically alter the form, substance and quantum of the earlier disclosed income," the Central Board of Direct Taxes (CBDT) said.

In a statement, the CBDT said that since November 8, some taxpayers may misuse this provision to revise the return filed by them for the earlier assessment year for manipulating income with an intention to show the current year's undisclosed earnings in the earlier year's filing.

The CBDT, the policy making body of the income tax department, further said if the department notices any manipulation in income in previous year's ITR (income tax return), it will conduct scrutiny.

"Any instance coming to the notice of the I-T department which reflects manipulation in the amount of income, cash-in- hand, profits etc and fudging of accounts may necessitate scrutiny of such cases so as to ascertain the correct income of the year and may also attract penalty and prosecution in appropriate cases as per provision of law," it said.

Under the Section 139(5) of the I-T Act, a revised ITR can only be filed if any person who has filed a return discovers any omission or any wrong statement therein.

Post demonetisation, the government has come out with a scheme giving tax dodgers another chance to come clean by paying 50 per cent of tax on junked currency deposited in banks post demonetisation.

The Pradhan Mantri Garib Kalyan Yojana (PMGKY) provides for 50 per cent taxes and surcharge on declarations of unaccounted cash deposited in banks. Declarants also have to park a quarter of the total sum in a non-interest bearing deposit for four years.

PTI

Delhi Government notifies implementation of 7th Pay Commission recommendations

New Delhi: The Delhi government has notified implementation of the Seventh Pay Commission recommendations, which provides 2.5 times hike in basic salaries and pensions of its employees and pensioners with effect from January 1.

Delhi Lt Governor Najeeb Jung gave his approval for implementation of 7th Pay Commission recommendations for Delhi's government employees.

The over one lakh employees of the city administration, will get the increased salaries from next month. The arrears will also be paid in one go next month, a Delhi government official said.

The hike in pensions and salaries will cost the exchequer around Rs 2,000 crore annually. The notification was issued after Lt Governor Najeeb Jung gave his approval for the same, the official said.

The move comes nearly one-and-a-half months after the Centre approved the recommendations of the pay panel.

"Arrears as accruing on account of revised pay consequent upon fixation of pay under CCS (RP) Rules with effect from January 1, 2016 shall be paid in cash in one installment along with the payment of salary for the month of August, 2016, after making necessary adjustment on account of GPF and NPS, as applicable, in view of the revised pay," Deputy Secretary Manoj Kumar said in a written communication to head of all departments.

As per the the new scales of pay, the basic salary at entry-level is going up from Rs 7,000 per month to Rs 18,000, while at the highest level i.e. secretary, it would go up from Rs 90,000 to Rs 2.5 lakh. For class one officers,the starting salary will be Rs 56,100.

PTI

‘One nation one tax’ will eliminate corruption: FM Jaitley on GST

New Delhi: As the government gears up for a fresh push to get the long-pending GST law passed, Finance Minister Arun Jaitley today said the 'one nation, one tax' regime will reduce the taxation levels and also eliminate corruption.

Finance Minister Arun Jaitley today delivering the 1st Dr A P J Abdul Kalam Memorial Lecture, in New Delhi.

Stressing that India cannot afford the kind of spectrum or coal mines controversies of the past, he said: "This whole idea of one nation one tax is extremely important for India, in not only reducing the level of tax but also for providing an ease (of doing business) and eliminating any forms of corruption".

He said India cannot afford to have an indirect tax system where one is taxed at every point.

Jaitley was delivering the 1st Dr A P J Abdul Kalam Memorial Lecture at India Islamic Cultural Centre here.

The proposed Goods and Services Tax (GST) will subsume most of the indirect taxes. Government has listed the Constitutional Amendment Bill for introduction of GST in Rajya Sabha for consideration and passage next week.

The Finance Minister further said India will need all forms of investments.

"Now investment from private sector ... will come only if India becomes best possible investment destination. For that India has to get rid of corruption, India has to have a quicker decision making process, India has to have business environment which is extremely easy," he said.

He also said that despite easing foreign investment process, there are delays at states level.

"... every time we delay a project, every time we put hurdles, you create an adverse environment where you lose jobs, ancillary units, and revenue which sends a bad picture of India to other future investments," Jaitley said.

PTI

Government extends last date for filing tax returns to Aug 5

New Delhi: The last date for filing income-tax returns has been extended to August 5.

Tax returns for 2015-16 (assessment year 2016-17) were originally to be filed by July 31. But in view of the day-long strike at public sector banks, the deadline has been extended to August 5.

For Jammu and Kashmir, the deadline will be August 31 in view of the ongoing turmoil in the state.

"In view of today's bank strike and disturbance in J&K, the due date of IT return filing is being extended," Revenue Secretary Hasmukh Adhia said in a tweet today.

For assessees across India liable to file I-T returns by July 31, the deadline is extended up to August 5, he said.

"For assessees in J&K, this date has been extended to August 31," the secretary added.

PTI

I-T department to consider March 31 for senior citizen eligibility

New Delhi: While considering the higher exemption limit of tax liability for senior and very senior citizens, a person will be considered to have attained a particular age on March 31 if his or her birthdate is a day later on April 1, the CBDT today said.

Atulesh Jindal, chairman of the CBDT

The Central Board of Direct Taxes (CBDT) issued a clarification on the issue, relying on a Supreme Court ruling of 1986, as it directed all its Assessing Officers (AOs) to henceforth "ascertain the age while computing tax liability of a taxpayer falling in individual category, being an Indian resident" by the new ruling.

"The CBDT...Hereby clarifies that a person born on April 1 would be considered to have attained a particular age on March 31, the day preceding the anniversary of his birthday. In particular, the question of attainment of age of eligibility of being considered a senior/very senior citizen would therefore be decided on the basis of above criteria," it said.

The Board said the apex court, while giving the said ruling, had observed that "while counting the age of the person, whole of the day should be reckoned and it start from 12 O' clock in the midnight and he attains the specified age on the preceding, the anniversary of his birthday."

The I-T department, for tax returns filing purposes, considers 60 years of age for a person to be considered senior citizen and 80 years for very senior citizen.

While no income tax is to be paid by senior citizens up to annual income of Rs 3 lakh the same limit for very senior citizens is Rs 5 lakh.

PTI

How can your bank account with internet banking facility can be hacked?

How can your bank account with internet banking facility can be hacked?  1. Hacker accesses your name and date of birth from Facebook. 2. With these details he goes to the Income Tax site and updates them. From there he obtains the Pan card and mobile numbers. 3. Then he gets a duplicate Pan card made. 4. After this he lodges a mobile theft complaint in a police station.  5. With the duplicate Pan card he gets another Sim card from the mobile company. 6. Through internet banking he is now ready to access your account.  7. He goes to the site and uses the forgot my password option. 8. Now he easily gets past other options and gets the Internet banking pin on his Sim card. This information was issued by the Cyber Cell Police recently. All those who use Net Banking are requested to edit Facebook profile and delete the birth date and mobile number as a safety measure.  Forwarded as received.  Posted by: BHARAT BHUSHAN GHAI <BBGHAI@GMAIL.COM>

Income tax department to establish over 60 taxpayer centres across country

New Delhi: The Income Tax department will establish over 60 facilitation centres — Aaykar Seva Kendras — this fiscal from Goalpara in Assam to Neemuch in MP as part of efforts to widen the taxpayer base and reach a maximum number of people who need help in doing business with the taxman.

The ASKs help a person in conducting their personal and business operation with the department ranging from obtaining a new Permanent Account Number (PAN) to filing Income Tax Returns (ITRs) apart from other income tax related subjects.

As per a blueprint prepared in this regard, the Central Board of Direct Taxes has authorised creation of 65 such ASKs at locations like Goalpara and Morigaon (Assam), Siliguri and Haldia (West Bengal), Dharmapuri (Tamil Nadu), Haridwar and Rishikesh (Uttarakhand), Hardoi and Lakhimpur Kheri (Uttar Pradesh), Dahod and Porbandar (Gujarat), Neemuch and Mandsaur (Madhya Pradesh), Jajpur and Puri (Odisha) and Rewari and Sonepat in Haryana.

"These are few of the prominent places where the ASKs are planned to be created within 2016-17 financial year that ends on March 31 next year. There are many more cities in one state where an ASK will come up. This is a priority project for the CBDT and the Income Tax department," a senior official said.

The effort is to reach more and more people so that they can get their PAN made, understand taxation issues and also those under the tax bracket do not have to travel far to get their issues resolved, he added.

CBDT has also asked the field offices of the department to constitute local teams under the range heads for speedy creation of these centres.

A typical ASK is headed by a I-T department officer and has all public facilities under one roof for hassle-free operations for a taxpayer.

A number of ASKs are currently operational in prominent cities and towns in the country.

PTI

Black money window: I-T department creates special tab on website

New Delhi: The Income Tax department has created a special zone on its official website to showcase country-wide activities being done by it to popularise the one-time black money compliance window that will complete its first month in operation soon.

Prime Minister Narendra Modi

A 'dashboard' has been hosted on the official web portal of the department --www.Incometaxindia.Gov.In-- and it chronicles all activities initiated by the department, the Central Board of Direct Taxes and the Finance Ministry to make the Income Declaration Scheme (IDS) successful.

The four-month IDS got operational on June 1 and will be in force till September 30. The declarant will have to pay a total of 45 per cent in tax and penalty by November this year and the government has ensured that such entities will have immunity from prosecution.

Under the new tab on the website, the department has also put messages and speeches made by Prime Minister Narendra Modi, Finance Minister Arun Jaitley and other senior officials in connection with the IDS, even as it goes on to chronicle news stories and tally of sessions being held by taxmen across the country to popularise the scheme.

IDS was announced by the government with an aim to flush out black money from the domestic economy.

The IDS will apply to undisclosed income whether in the form of investment in assets or otherwise, pertaining to financial year 2015-16 or earlier.

Declarations under IDS can either be made online on the official e-filing website of the tax department or before various regional Principal Commissioners of I-T department.

 

TST

Income Tax dept to use powers to arrest, detain wilful defaulters

New Delhi, Jun 21 (PTI) Challenged by increasing cases of defaulters who smartly evade paying due taxes, the Income Tax department has asked its officers not to shy away from invoking the rare provisions of arrest, detention and auctioning of attached assets of the accused.

Atulesh Jindal, chairman of the CBDT, the controlling body of the income tax department.

The Central Board of Direct Taxes, in a strategy paper for the current fiscal, has directed the tax department to use this provision, used rarely till now, stated under Section 276C (2) of the IT Act that stipulates action to ensure rigorous imprisonment for a period between three months and three years which may also carry a fine.

The IT department has a designated official to execute these rare powers, called the Tax Recovery Officer (TRO) within its establishment.

"The machinery of the TRO should be strengthened by providing more infrastructure and manpower. The TROs should be further trained specifically for their work in order to increase their effectiveness. In respect of non-compliant defaulters, the provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II should be invoked by the TRO.

"Stringent action can be taken in suitable cases including use of the provision for prosecution under section 276C(2) of the Act," it said.

The strategy papers act as a guiding light for the taxman for the financial year, in this case 2016-17.

The directives have also asked the supervising authority of the TROs (Principal Commissioner of IT) to "monitor" their work "especially in the area of attachment and sale of property to ensure that the attached properties are sold within one year."

"The role of a TRO comes at the fag end in a tax evasion case when the demand raised by the department gets converted into wilful default. A TRO executes his power of arrest and detention when there is a chronic default. That is why we see these provisions have been rarely invoked in the past. But now, more action on this front will be undertaken as defaults are becoming a menace now," an IT official explained.

The instructions also make it clear to the TRO that in case of liquidation of assets there should be "prompt lodging of the claim" with the official liquidator and constant monitoring of the case in order to guard the interest of the revenue or the department.

It has also been directed, as per the strategy paper, that supervisory officers "may instruct" the TRO or the Assessing Officer of a case to monitor cases which are being heard in the Debt Recovery Tribunals (DRTs).

They (TRO) should, it said, consider lodging of claims of outstanding demand in such cases before the DRT.

"At any level of a default case, the department's interest of getting taxes is supreme and hence the TRO is being directed to pursue the cases upto the level of DRTs too.

Getting revenue and due taxes from an entity is the ultimate aim of the IT department. By using these new strategies, the department also ensures that a strong message goes to all such people that the taxman will not let it go easily," the official said.

PTI

IT dept to block PAN, LPG subsidy of defaulters

New Delhi: In order to cripple and check the activities of wilful tax defaulters, the Income Tax department has decided to "block" Permanent Account Number (PAN) of such entities, get their LPG subsidy cancelled and take measures to ensure that they are not sanctioned loans.

CBDT Chairman A K Jain

A number of such measures have been mooted by the tax department, to be undertaken this financial year, in order to curb the menace of large-scale tax avoidance and evasion.

As per a strategy paper prepared by the department, also accessed by PTI, the taxman will block PAN in such a way "that these defaulters are not sanctioned any loans or overdraft facility by public sector banks, as the same is bound to become non-performing assets".

Further, it said, "Ministry of Finance can be suggested to withdrawn facility like LPG subsidy which is directly credited in to the bank accounts of the said defaulters."

This step, the strategy paper said, will act to "disincentive" the defaulters.

The taxman also proposes that the identities of such blocked PANs be circulated to the Registrar of Properties "with a request for not allowing any registration of immovable properties where such PANs are involved."

Such defaulters' information has also been recommended to be circulated across tax offices so that their activities loans or government subsidy can be plugged country-wide.

The department has also decided to subscribe to the Credit Information Bureau Limited (CIBIL) data, on a possible payment basis, to check out the financial activities of defaulters and undertake action against them for recovery and freezing of assets.

CIBIL is an agency to collect and maintain records of an entities' payments pertaining to loans and credit cards.

The department, beginning last year, has also started to 'name and shame' large tax defaulters (over Rs 20 crore default) by publishing their names and other credentials in leading national dailies and on its official web portal.

Till now, 67 such entities have been put in public domain by the department.

The IT department, beginning this financial year, has also decided to publicly name all category of taxpayers who have a default of Rs one crore and above.

"Tax default is a major menace that the department is grappling with.These new measures are aimed to curb these instances in the right earnest," a senior IT official said.

PTI

Abolish income tax to push growth: Swamy

Mumbai: BJP leader Subramanian Swamy today pitched for abolition of Income Tax to increase savings rate and help economic growth, and also suggested nationalisation of funds stashed in tax havens to retrieve the black money.

"The only way to encourage people to save more today is by abolishing the income tax completely," BJP leader Subramanian Swamy said.

Finance Minister Arun Jaitley did not use this method because he, being a lawyer, was "sensitive" to the rights of those who have kept black money abroad, Swamy said at an event here.

"If I am in the Government, I will do it within one week, if I am not in Government, I will do it (remove income tax) within three years. The only way to encourage people to save more today is by abolishing the income tax completely," Swamy said.

While Prime Minister Narendra Modi exhorted the tax authorities to double the tax base to 10 crore earlier in the day, Swamy said here the national savings rate has dipped to 33 per cent and needs to be pushed up to at least 40 per cent.

Increase in the savings rate will provide resources for growth and the Rs 2 trillion which will have to be foregone (if the income tax is abolished) will get more than compensated, Swamy said, stressing that the country needs to push the growth up to 10 per cent per annum for at least a decade for eradicating poverty and unemployment.

The leader claimed that Rs 120 trillion or 60 times the revenues from tax collection is stashed in tax havens abroad which needs to be brought back.

Citing his conversation with Modi, he said the Prime Minister has "preferred" adoption of a UN-approved method of recovering the black money by nationalisation of such funds.

"If any country passes a law...That the citizens of their country holding accounts in the banks of these 70 countries (practising secret banking), their bank account is hereby nationalised," he said.

Stating that countries like Egypt, the Philippines and Libya have used this method, Swamy said Modi has asked him to prepare a note on the same.

"I am hoping that the note that I will be giving to the PM in a few days will translate itself into a law, into a legislation and then we can hope we will get all these countries to give the money," he said.

"Why didn't we do this all this while? Because Jaitley is a lawyer and he was little sensitive to the rights of those who have accounts there. But now the PM says this is an important issue and we have to do something about it," he said.

PTI

Remove fear of harassment among taxpayers, PM tells CBDT, CBEC officials

New Delhi: Prime Minister Narendra Modi today asked the CBDT and CBEC officials to remove fear of harassment from the minds of taxpayers and focus on five pillars of administration -- revenue, accountability, probity, information and digitisation (RAPID).

Prime Minister Narendra Modi and Finance Minister Arun Jaitley today at Rajasva Gyan Sangam.

Inaugurating the two-day Rajasva Gyan Sangam here, Prime Minister asked the officials to "move towards digitisation" in a bid to make tax administration better and efficient and work towards bridging the "trust deficit".

Modi also suggested that officials should endeavour to remove "fear of harassment" from the minds of assesses and emphasised that their behaviour should be "soft and sober", Minister of State for Finance Jayant Sinha said while briefing reporters about the meeting.

Finance Minister Arun Jaitley and senior tax administrators of Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) are participating in the two-day annual conference.

Prime Minister also underlined the need for increasing the number of tax payers to 10 crore from 5.43 crore, at present.

PTI