IRS Officers Propose Steep Hike In Taxes; CBDT Slams Them After Vehement Protests From Furious Taxpayers

Some eager-beaver IRS officers have landed themselves in hot water by circulating a document titled “FORCE 1.0” (Fiscal Options & Response to COVID-19 Epidemic).

The document is said to be “Recommendations of the Indian Revenue Service on revenue mobilization and economic impetus to fight COVID-19”.

Increase the peak income-tax rate to 40% to meet the deficit

Essentially, the recommendations are that since there will be a loss of revenue due to the Covid-19 Pandemic, more taxes should be imposed on the taxpayers, especially the affluent category.

In times like these, the so called “super rich” have a higher obligation towards ensuring the larger public good. This is for multiple reasons – they enjoy a higher capacity to pay with significantly higher levels of disposable incomes compared with the rest, they have a higher stake in ensuring the economy springs back into action, and their current levels of wealth itself is a product of the social contract between the state and its citizens,” it is stated, reflecting the ideology of a socialist.

Most high-income earners still have the luxury of working from home, and the wealthy can fall back upon their wealth to cope with the temporary shock. In view of several European economists, taxing the wealthy would be the most “progressive fiscal tool”, as wealth is far more concentrated than income and consumption,” it is added.

It is suggested in the report that this segment of the population can be taxed through two alternative means, both of which can be imposed for a limited, fixed period of time:

* raising highest slab rate to 40% for total income levels above a min. threshold of Rs. 1 crore


* re-introduction of the wealth tax for those with net wealth of Rs. 5 crores or more.

Citizens Fume

The proposal by the IRS Officers evoked fury amongst taxpayers, most of whom are already being taxed to the breaking point.

Finance Ministry & CBDT slam the report as “irresponsible” and haul up the IRS Officers for indiscipline

The Finance Ministry and the CBDT have not taken kindly to the unsolicited suggestions offered by the IRS officers.

The report was described as being “irresponsible”. It was also stated that the concerned officers will be charge-sheeted for prima-Facie act of indiscipline & violation of conduct rules.

However, some irate taxpayers were not placated even after the official response of the CBDT.

12 comments on “IRS Officers Propose Steep Hike In Taxes; CBDT Slams Them After Vehement Protests From Furious Taxpayers
  1. Paarth says:

    Congress cites RTI reply from RBI to allege government waived Rs 68,607 crore of bank loan defaulters. The reporting officer need to reply the tax treatment of these waivers.

  2. Varaprasad Daitha says:

    The Financial Institutions had waived lakhs of crores of loans and interest on such loans. As per accounting policies all such loans and accrued interest would reflect in the financial accounts of such waivees (whose loans were waived). As per Incometax any debts/ interest waived by the recipient such benefit should have been taxed as income from other sources.

    That is my view. Please comment even if you do not agree.

    Had the IRS officers had discussed such issues their minds would have been sharpened.

  3. b.s.waghela says:

    These 51 Officers have no practical field experience. We can call them FOOLS/STUPID. Their Report is unauthorised and it is a case of gross indiscipline. How can they go to the Press directly. Suspend all these Officers immediately. Start disciplinary proceedings against all of them. Give them punishment postings and make an Adverse Entry in their CRs. Ministry of Finance and CBDT should not tolerate such nonsense.

  4. Varaprasad Daitha says:

    As per the CBI records (of course only a tip of iceberg) if the corrupt IRS officers and incapacitated IRS officers and high handed IRS officers are straightened the economic growth would not gear up.

    They do not know the reasons for the so called super rich position in the society.

    These short sighted earlier IRS officers are solely responsible to shatter the well knit accounting verification mechanism.

  5. T. Srinivasa says:

    It is unfortunate that these officials are offering such a stupid solution at this hour of crisis, which in any case is a pittance. The need of the hour is to kick start the economy in a phased manner starting with units in green zone and extend it to other areas taking State governments into confidence. If the Country recovers from this shock in the next two-three years it will be great. May I humbly advise that let there be income generation first before embarking upon taxation IRS experts !!!!

  6. J.P.Gupta says:

    Abolish Income Tax itself which is the fountain source of black money. It discourages enterprise and corrupts even the GOD fearing minds.

  7. Paarth says:

    The Income Tax authorities these days have hardly any work at hand. It is time that their salary vis-a-vis their workload should be subjected to cost audit. Secondly, the Tax on Income being a roadblock in entrepreneurship should be scrapped altogether. Some other avenue to generate revenue should be found.

  8. Mahendra says:

    In which direction the Ministry is heading, if its young IRS officers make such biased suggestion. It shows their mentality that every tax payer is a thief. Has this young breed been taught and trained in this fashion. This suggestion is simply tax terrorism of these young officers who are very well remunerated. Before making such suggestion they should have offered voluntary 50% reduction in their pay rolls. Then it would have carried weight. Vande Mataram.

    • NITIN SHARMA says:

      I propose reduction of 50% salary of these IRS and this will definitely increase in revenue without any litigation.

  9. Bobjee kurien says:

    When the nation is going through a stress heartless IRS has shown they are inhuman
    It is easy for them to suggest because no revenue official is poor after they join the services
    They are used to live off others

  10. anil says:

    India wants to woo foreign investment and re location of manufacturing from china, promising ease of doing business in india. of course right now this is a joke. with officers such as this in revenue service, it will be a pipe dream. these guys are hell bent on inventing new taxes, higher tax rates , reviving abandoned taxes (like (estate duty) only to increase their avenues to make money. in nay case they know jack s…about economy and development . most of them are history , geography post graduates!.

  11. S Ramasubramanian says:

    I really don’t understand the outrage over the report. I wonder whether those who are overtly critical of the report have read it through. There are a lot of suggestions giving tax relief to indicviduals coroprates trusts etc. Just picking up one suggestion to increase the tax rate and berating the authors is totally unfair. You may not agree with the suggestions. One should not go over board with the criticism which is unfair

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