After the Corona epidemic, the goal of confused tax collection is now increasing with the ongoing economic activities. PC Modi, Chairman of the Central Board of Direct Taxes, CBDT, has said in a special conversation with Saurabh Shukla, a special correspondent of Hindustan, that the tax collection target now is only 9% as compared to last year. He said that now an effort is being made to simplify the tax system in the country so that people can come forward to pay taxes from their own minds.
1 How much tax collection has decreased in the corona period and how confident are you to make up for it? What are your challenges for the next financial year?
Income tax collections have been affected by the situation arising due to the epidemic, but the steps being taken to make the tax system easier will compensate the losses incurred. According to the estimates of early days, there was a possibility of reducing tax collection by 30 percent but now it has come down to 9 percent. In the coming days, the impact of new government expenditure will also be seen. Increase in infrastructure will increase both business and profits. In such a situation, the tax collection is also going to increase.
The jobs of 2 people have gone away. Also, there are many whose salary has decreased. In such a situation, what is the reason behind the confidence of increasing tax collection?
Changes are being seen in the behavior of people regarding the payment of tax. This suggests that the government’s earnings will increase in the coming years. Now the tax department is moving towards a completely digital format. Now taking the pan is done in minutes. Return filing is being done online and at the convenience of the taxpayer without any problems. At the same time, return processing has become easier. Even after the case in Scrutney, his hearing has become faceless. Till now the hearing of the appeal has also been made faceless. Due to technology, not only the difficulties of the people have been eased, but the trend towards giving tax has also increased.
3 Changes made in technology, you have a birth chart related to the entire financial transaction of every person, how does the department use it and will there be any increase in tax collection from it?
Today I get information about taxpayers from many agencies. The information about the transactions taking place in the Ministry of CBIC, SEBI, Corporate Affairs or in the banks and sub registrar offices is kept in the system. Income tax department shows this in Kartada’s account. Earlier this information was only with the department, on the basis of which the notice was issued during scrutiny. In the new system, this information is shown on the e-filing portal so that the taxpayer takes filing after taking cognizance while filing the return. By this, the person is also getting a pre-filled form, which has increased easily. It will also help in increasing the tax base.
It has been seen that many people have been doing high amount transactions but do not show it in the returns. If all their information is seen in the pre-field form, then they will file it themselves. If not, then the flag will come in the system and it will be easy to catch them.
4 Now how are scrutiny and cases assessed?
Now in cases where the red flag comes out through computer and data analytics, it seems that there is something wrong here and it is scrubbed separately. It is possible to collect and use information
5 How many cases of faceless assessment have been done with the new system?
So far, the Income Tax Department has covered more than 44 thousand cases in faceless assessment. At the same time, decision has been taken in 3000 cases in the appeal.
6 What are the changes regarding the return assessment and how will the taxpayer benefit from it?
Time has been reduced by the department regarding the return assessment. Earlier it used to take 1 year, now it will be done in 9 months. Assessment is done only in those cases in which many flags are exposed i.e. the difference between the information of the department and the return filed by the taxpayer, then in such cases now notice will be sent within 9 months instead of 1 year.
7 It takes long time for people to hear tax matters and the money of the department is also stuck. What steps have been taken to deal with it?
In the budget, an initiative has been taken to resolve returns below 50 lakh rupees and for cases involving additions of 10 lakh. For this, a Dispute Resolution Mechanism has been created so that the taxpayer will have the right to settle the matter before the committee. Earlier it used to be big cases. More people will benefit from this.
8 Most of the people are not getting the benefit of tax exemption in affordable housing. How are the conditions of construction slowing down due to Korana?
For this, we have extended the time limit of the project starting from 31 March to 1 year. The rebate on interest payment has also been increased by 1 year. Affordable housing has been the focus of the government and wherever there is a need to raise the limit, it has been extended.