Two Lakh cases Pending with Appellate Commissioners in Income Tax - FM
ADDRESSING the Chief Commissioners and DGs of Income Tax yesterday, the FM said;
++ Direct Taxes are the most important source of tax revenues for the Government under a progressive tax regime. For us, they contribute around 56 per cent of total tax revenues for the Central Government.
++ Inthelastdecade, for every 1 per cent growth in GDP there was a growth of nearly 1.9 per cent in direct tax collections.
++ For the Financial Year 2012-13, the Income-tax Department has been given a tax collections target of about Rs. 5.70 Lakh Crore , which is about 15 per cent more than the actual collections in 2011-12.
++ The proposed Direct Tax Code (DTC) is expected to bring in a much awaited transformation in tax structure and its administration. The Standing Committee on Finance, after its examination, has already submitted its report on the Direct Tax Code Bill. I have indicated that the amended Bill will be introduced in the Parliament in the Monsoon Session. I am hoping that DTCwill be effective from April 1, 2013.The time has come for the Department to prepare itself for the transition from the Income Tax Act 1961 to the new DTC regime.It would include addressing various issues like reframing of rules and forms, redrawing of business processes, training needs of human resources and the necessary infrastructure needs for smooth transition to the new regime. All this has to be completed in a manner so as to avoid any inconvenience to tax-payers and also to sustain the revenue buoyancy.
++ Tax Deduction at Source (TDS) is a major component of tax collected and is based on very healthy principle of "pay as you earn”. I am informed that the Centralized Processing Centre (CPC) for TDS matters being set-up at Ghaziabad is likely to be functional very soon. CPC (TDS) would mark a major step in ensuring TDS compliance through processing of TDS statements with a focus on usage of technology driven end to end processes.Its main objective is to eliminate the TDS mismatch cases which are presently a matter of concern for the taxpayers in the proper claim of TDS credits.
++ In line with the Governments emphasis on promoting voluntary compliance of tax laws and recognizing the role that today's children will play in tomorrow's society, we need to educate them on the importance of taxes for the nation building process. I am happy to know that the Department has partnered with NCERT to introduce information in this regard in the school textbooks.
++ I am of firm opinion that no organization can function efficiently unless it has a motivated workforce. The human resource management should be transparent, stable and the aim should be to become a model employer, to provide equal opportunity to all.This includes adherence to time schedule for holding DPCs for promotions to various cadres, employees' welfare measures, and improved working environment in offices. I expect that the CBDT takes appropriate steps to fulfill the expectations of its officers in this regard.
++ Rising litigation with the tax payers and amount locked-up in appeal before Commissioners of Income Tax (Appeals)/CIT (A), Income Tax Appellate Tribunals (ITATs), High Courts and the Supreme Court has been a matter of serious concern.I am informed that a total amount of Rs. 4,36,741 Crore was locked-up in 2,59,523 cases as on 31 st December, 2011.Out of this Rs. 2,52,846 Crore is locked-up in 1,93,525 cases which are pending before CIT(A).