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Economy Dec 11, 2012

Disclose right income or face action: Govt warns tax evaders

New Delhi: In a stern warning to tax evaders, the government today asked them to either disclose their correct income and pay advance tax by December 15 or be prepared to face action.

"Government would urge all assessees to disclose their true income. There is no advantage in suppressing the true income or avoiding paying income tax that is due", Revenue Secretary Sumit Bose told reporters here.

Regretting that there was "gross-understatement" in filing of advance tax by assessees, he said, "sooner than later, the information available with the income tax department will lead the department to the doors of such persons."

he government proposes to collect Rs 5.70 lakh crore from direct taxes, which include income tax, corporate tax and wealth tax, this fiscal. Picture:moneycontrol.com

Bose said that during assessment year 2012-13, only 14.62 lakh assessees including professionals and companies have declared their taxable income of over Rs 10 lakh, adding "any fair minded person will agree that this is a gross under- statement."

The direct tax collection during April-October worked out to be Rs 3.02 lakh crore, showing an increase of 6.59 percent as against the annual growth target of 15 percent. The government proposes to collect Rs 5.70 lakh crore from direct taxes, which include income tax, corporate tax and wealth tax, this fiscal.

Bose said the I-T department has information that 33.83 lakh persons made cash deposits totalling Rs 10 lakh or more in the savings bank account.

Also 16 lakh persons made payments of Rs 2 lakh or more against their credit cards and over 11.91 lakh people decided to purchase or sell house property worth Rs 30 lakh or more.

December 15 is the last date for paying the third instalment of advance tax for corporates and the second instalment for all other assesses.

"For assesses who have not yet paid the correct advance tax, there is an opportunity to rectify the mistake and pay the advance tax by December 15," Bose said.

Soon after assuming charge of the Ministry, Finance Minister P Chidambaram had made a statement regarding taxation and tax administration.

He had emphasised on clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary that will provide great assurance to investors.

Asking assessees to pay advances taxes by due date, Chidambaram had said: "paying taxes is a mark of civilisation. If I pay more taxes, I should be more happy and more proud. I am making more money and I am paying more taxes".

PTI

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