Shri. K. V. Chowdary, the newly appointed Chairman of the CBDT, has addressed a letter dated 01.08.2014 to the income-tax department in which he has pointed out that one of the immediate challenging task is reaching the ‘not so easy‘ target for Revenue collection without undue harassment and high handedness. He has emphasized that the department has to improve its image and become a “friendly, professional, non adversarial and competent organization focused on Revenue collection, tax payers services and ensuring strict compliance with direct tax laws”.
Mr. Chowdary has emphasized that one of the issues that requires “immediate and earnest attention” is quicker and reasonable resolution of the requests/ grievances of the taxpayers, early resolution of disputes, effective assessments analyzing all the facts and avoiding high pitched assessments, promotion of compliance, sending strong message by dealing with tax evasion and tax frauds firmly effectively and quickly, widening the tax base, etc.
We wish Mr. Chowdary good luck in his new posting.
Letter dated 01.08.2014 of the Mr. K. V. Chowdary, CBDT Chairman (231.9 KiB, 2,354 hits)
Original Income-Tax Act, 1961 was well drafted by learned officials in Finance Ministry & it was capable of meeting the expectation of the Govt. in all future events, except requiring amendments for events/changes taking place in this 21st Century. Disturbance to the original intention of legislature in Income-Tax Act, 1961 started in 1984 by the intervention of Institute of Chartered Accountants of India by way of inserting mandatory Tax Audit Certificate U/s 44AB by only Chartered Accountants. This was also cautioned by Sri.P.C.Padhi, former Chairman, Central Board of Revenue and Deputy Controller & Auditor General of India, Sri.D.K.Rangnekar former Editor, Economic Times, who were the members of Direct Taxes Committee, popularly known as Wanchoo Committee & gave dissenting note on the issue. Mr.Modi Govt. in Budget 2017 has made the Income-Tax law still more complicated. One side Income-Tax Deptt. says that only assesses e-mail address should be provided to enable them to file returns voluntarily. On the other hand, CBDT amending Income-Tax law in such a way that compliance of return filing should be given through Super Specialist in Income-Tax law. There is no correlation between intent and action of Central Board of Direct Taxes. Simplification of Income-Tax law and Citizen Charter are only guise. Indian Income-Tax law is the highly complicated law in the world. This is evident from the size of statute book of Indian Income-Tax law.
Three draconian proposals in Budget-2017 – Businesses man should be worried about –
(1) Freedom to Govt officials to “Search/ Survey” with no accountability/Change Retrospective from 1962… all cases in pipeline :-
Section 132 and 132A amended that “the ‘reason to believe’ or ‘reason to suspect’, as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal.” This is by far the most harsh and bizarre change.It was a settled law that you cannot do any survey till you have any reasons to believe there is something bad against the revenue. The income tax officers should NOT just disturb anybody on mere suspicion, or any anguish, personal or officials, out of their one-sided sweet will. If this amendment is allowed, it may lead to virtual “Taxman’s Terror”. The law has been changed retrospectively since 1962 !!!. That is compromising the cases which are subjudice currently
(2) Freedom to ITO, to Attach properties during survey :-
Section 132(9B) added. If during survey the ITO feels it is important, then he can take permission of the Director General and attach any property for the realization of the tax.
Already reason need not be disclosed, as shared above in Point No.1. And now with rights of “provisional attachment:” …. The things could go out of hand, if checks and balances are not kept in tune. If allowed to go this way, it may lead to “Taxman’s Terror”.
(3) Freedom to ITO, to reopen cases up to 10 years old :-
For more than a decade the settled law was that in case of Survey, maximum 6 old years can be re-opened. Prior to that was sealed. Now, they have taken option to reopen up to 10 years.
These three harsh changes shall be w.e.f. 1st April 2017, after the passage of Finance Bill and notification. We need to take up these issues with the government to ensure a system of accountability, checks and balances for IT department so as not to unleash unnecessary and avoidable harassment and terror.
Spread the awareness to all citizens of India
Rightly said by Dr.G.Balakrishnaiah.
right thought by CBDT.
CONVINCE TAX PAYER WHERE HE HAD GONE WRONG AND COLLECT REVENUE. Do not indulge in harassment of tax payers. Harassment only is a dodging technique adopted by any!
All the more important is revenue collection by taxmen is not some services charges paid by tax payer but he helps the govt to pursue good work to be done by government concerned.
so taxpayer is a friend to governance!
Respect him or her!