Wealth Tax – also under scrutiny
While there is a general impression that virtually there is no wealth tax in India, CBDT is lamenting that wealth tax collections have not improved and is stagnant at about Rs 145 crores annually. Board’s further agony is that the number of wealth tax assessees is showing a continuous decline over the years and is presently at about 1 lakh. CBDT apparently believes that a large number of assessees are either not filing their returns or not disclosing true wealth.
So now wealth is also under scrutiny. Board wants:-
++ All Income tax cases which are presently being scrutinized should also be examined from the wealth tax angle
++ out of these Income tax cases under scrutiny, notice under section 16(2)/16(4)(i) of the Wealth Tax Act should be issued in suitable cases after examination.
++ if CCIT/DGIT on his own motion or on the matter having been brought to his notice by an authority below, is satisfied that a Wealth Tax case need to be taken up for scrutiny, the CCIT/DGIT may direct the Assessing Officer to take up the case for scrutiny.
Should the government really bother about collecting this 145 Crores?
INSTRUCTION NO. , Dated : May 16, 2006