The Central Board of Direct Taxes (CBDT) has unveiled a rigorous Central Action Plan (CAP) for the fiscal year 2024-25, targeting sectors notorious for high cash transactions that are frequently under-reported or unreported. This strategic initiative focuses on key areas including IVF clinics, luxury retailers, hotels, and medical colleges, all of which are identified as significant sources of evasion in reporting cash transactions exceeding Rs 2 lakh.
Despite the mandate for PAN (Permanent Account Number) in high-value transactions, current systems have proven inadequate in ensuring full compliance. To combat this issue, the CBDT's CAP proposes a robust verification process designed to scrutinize high-value expenditures and enhance the accuracy of reporting. Transactions exceeding Rs 2 lakh are required to be reported through SFT-013, but non-compliance remains a concern.
In response, the CBDT has instructed the Directorate of System and the Directorate of Intelligence & Criminal Investigation to identify and address authorities failing to validate PANs during transactions by September 30, 2024. The goal is to achieve 100% PAN validation by March 31, 2025.
The CAP also sets ambitious goals for expanding the tax base, aiming to increase the number of new taxpayers by 10% this financial year. This target, although slightly lower than the 11.9% increase recorded in FY 2023-24, represents a significant boost from previous years. The plan emphasizes the use of data mining and analytics to uncover non-filers and discrepancies in income tax returns (ITRs) through e-Verification, bolstered by local intelligence, market association feedback, and outreach programs.
Additionally, the tax department is implementing a targeted strategy for managing tax demands, focusing on the top 5,000 arrear cases, which collectively represent around 60% of the total demand exceeding Rs 43 lakh crore. The CAP calls for a swift and thorough analysis of these high-priority cases to enhance demand collection and management. Each Principal Chief Commissioner of Income Tax (Pr.CCIT) will establish a dedicated team, including the Principal Commissioner of Income Tax (Pr.CIT) and supporting officers, to effectively tackle these cases.
This comprehensive approach aims to address reporting gaps, bolster compliance, and expand the taxpayer base, reinforcing the CBDT's commitment to tax transparency and efficiency.
CAclubindia
