Electronic filing makes system transparent – FM
The Finance Minister, Shri P. Chidambaram, informed the Parliamentary Consultative Committee attached to his Ministry here today
that electronic filing and processing of tax returns has made the system more transparent which in turn will help in widening the tax base.
that the cost of tax collection in India is less than one per cent in the case of Direct Taxes as well as Indirect Taxes which is one of the lowest in the world.
that while the traditional methods like search and seizure have a role and have a demonstration effect, their effectiveness in terms of detecting concealed income or evasion of tax is limited. These methods should be substituted by the intelligent use of information.
that various methods are being adopted to ensure that the number of appeals filed is reduced and the total amount of litigation is reduced.
that the refund is credited in the bank accounts mentioned in the returns to avoid any delay and this facility is operational in 12 major cities at present.
The Outcome budget, aimed at gauging the effectiveness of money spent on various heads by different ministries will be released by the FM in a couple of days. The outcome budget, to be presented for the first time, is to discipline ministries in their spending by ensuring that they do not save now and spend in March. The FM had given strict instructions that 66 per cent of the budgeted expenditure has to be spent in the first three quarters and not more than 33 per cent in the last quarter. There is a March spending spree in government offices when expenditure was incurred for the sake of it and there were no means of gauging whether it translated into physical targets.