The trading community may soon come under greater income tax scrutiny.
The finance ministry is likely to conduct income surveys based on
addresses picked up from trade directories. According to official
sources, the move would boost revenue collection and increase
compliance.
A
Central Board of Direct Taxes (CBDT) official, however, said, “ It is
just a part of our plan to increase the number of survey operations
this year and not aimed only at the trading community.” CBDT sources
said, with sustained pressure, voluntary compliance can become a way of
life.
The revenue department has decided to increase its focus
on investigative measures to raise compliance levels. It is confident
that tax surveys will prove to be a very handy tool, especially with a
direct tax collection target of Rs 2,67,175 crore for 2007-08.
As
many as 200 surveys were carried out by the IT department even during
the previous fiscal and over Rs 3,000 crore as additional income were
unearthed.
Surveys form an integral part of assessment and are
conducted by the tax department’s investment wing and assessing
officers when returns filed by individuals and companies are lower
compared to their profits. They are conducted only on business premises
and are different from income tax raids.
Meanwhile, the Central
Board of Excise and Customs is also planning to increase surveys and
audits of trading premises to boost excise duty collection. The move
comes in the wake of the poor excise duty collection in 2006-07,
attributed mainly to low compliance.
Pincer Attack
• It is a part of the plan to increase number of surveys that are not, however, aimed only at the traders
• Direct tax collection target for 2007-08 is Rs 2,67,175 cr
• The Central Board of Excise and Customs is also planning to increase surveys and audits of trading premises
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