FM asks I-T officials to avoid raids

Posted By: Religare
Subscribe to GoodReturns

FM asks I-T officials to avoid raids
Finance Minister P Chidambaram, who has assured foreign investors of a non-adversarial tax regime in India during his road shows, has now asked Income Tax officials to tread cautiously while chasing tax evaders and avoid raids in case information is available from third-party sources.

A Business Standard report quoted a financial ministry official as saying "The finance minister said our approach should be non-intrusive. We will get as much information as possible on our own and then give the tax evaders a chance to pay up their dues. There need not be a surprise element. But, of course, raids would still be required in some cases where we can't get information from other sources."

At a meeting with commissioners and director-generals of income tax recently, Chidambaram also urged for the use of latest technology to detect tax evasion, increase compliance and widen tax base.

"The department will try to address systematic issues rather than focusing on individual taxpayers. We are focusing on sectors like real estate, infrastructure, mining and manufacturing," the official said.

India's image among foreign investors came on the edge as various foreign companies like Vodafone, Cadbury, Nokia, IBM India, Shell, LG, Capgemini, Hewlett-Packard, Gillette, and Microsoft, among others, received tax notices in the recent past.

Raids had however come down to 422 in 2012-13, against 621 the previous year. Going by the FM's plan, they would be even lower in the current fiscal year.

Read more about: income tax, finance minister
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'