Modi government bags Rs 26,500 crore from those who didn’t file returns!
Modi government’s high-voltage drive to go after the big evaders has improved its tax kitty this year, forcing the filing of at least 1.7 crores in extra returns that took its mop-up close to Rs 26,500 crore till December.
Now, this is an answer to all those Congressmen. This is an answer to those alleging sharp weapons against the PM. The central government under the guidance of PM Modi has acted as per its words spoken. PM Modi had promised to punish all those playing up by not paying tax to the government.
Finance minister Arun Jaitley in a reply to Parliament said that the tax department had been identifying non-filers by tracking in-house information and tallying it with data on high-value transactions received from external agencies along with TDS and tax collected at source.
Wow, Modi Govt mops up Rs 26,500 crore from those who didn't file tax returns. It is only tip of the iceberg but good start. Let's reinforce ED and IT to catch more. Good steps being taken. What prevented earlier regimes from doing so?
— Anshul Saxena (@AskAnshul) February 10, 2018
“The mechanism for collection and verification of financial information has been broadened to include data in respect of various types of high-value transactions from banks and financial institutions and high-value expenditure from commercial establishments in the form of Statement of Financial Transaction (SFT),” the FM said, adding that the scope of TDS and TCS was also expanded.
He said quoting Permanent Account Number (PAN) was now mandatory for transactions of over Rs 2 lakh including on property, shares, bonds, insurance and foreign travel. This was yielding enormous data, which was being mined by the tax department.
As a result, last year, as many as 35 lakh non-filers were identified; who the tax department believes had a tax liability. Although the number is down from 67 lakh a year ago, many who had large cash deposits may have filed returns. The move is part of an exercise aimed at deepening the income tax system with the FM saying this year, the target was to get 1.25 crore new return filers.
He said that “after identifying the non-filers, the government was using rule-based algorithms to classify cases into various categories and monitoring them”. Text messages and emails were also sent to the targeted groups to file returns and a compliance management cell had been set up to track responses. This was followed by notices.
The system is now proposed to be made more stringent through a new mechanism, called “Project Insight”, to target individuals and seek voluntary compliance. It is a warning to all those people who try to prevent themselves from the tax burden. Tax payment is a duty of every single citizen and necessary for the Nation development.
Source: Economic Times