Income Tax Department-Tax Data, Initiatives to Bring Efficiency, Transparency, Fairness (Important) (Download PDF)

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Government is committed to widen the tax base by encouraging and incentivizing the new tax payers. Following are some of the important initiatives along with supporting tax data. Number of tax payers increased significantly from 4.72 crore in financial year 2012 - 13 to 6.26 crore during the Financial Year 2016 - 17.

Chart of Annual Increase In Income Tax Collection

Chart of Annual Increase In Income Tax Collection

Chart of Annual Increase In Income Tax Collection

  • Direct Tax Revenue Collections up to 18th September, 2017 in the current Financial Year 2017 - 18 rose to Rs. 3.7 lakh crore with a growth of 15.7%.

Key Initiatives to Bring Efficiency, Transparency and Fairness in Tax Administration

  • Single Page ITR-1 (SAHAJ) Form was introduced for tax payers having income up to Rs. 50 lakhs.

  • Rate of tax for individuals having income of Rs. 2.5 lakhs to Rs. 5 lakhs was reduced from 10 % to 5%

  • Concept of ‘no scrutiny’ was introduced for the First Time Non-Business Tax Payers having income up to Rs. 5 lakhs to encourage joining the tax net.

  • Corporate tax was reduced to 25 % for companies with turn-over up to Rs. 50 crore- covering 96 % of the companies.

  • New manufacturing companies incorporated on or after 1st March 2016 have option to be taxed at 25 % without any deduction.

  • The MAT credit was allowed to be carry forward up to 15 years instead of 10 years

Initiatives in E-Governance

E-governance initiatives help in having minimum direct interface between the tax assessing authorities and the assesses- minimizing harassment, corruption and time saving.

  • 97 % of the income tax returns were filed electronically in 2017 of which 92 % returns were processed within 60 days and 90 % refunds were also issued within 60 days.

  • Tax Department introduced Grievance Redressal System- E-Nivaran integrating all the online and paper grievances and tracks them till their resolution- every grievance is acknowledged and resolution is intimated through email and SMS.

  • 84 % of 4.65 lakh E-Nivaran grievances have been resolved so far.

  • E-Sahyog is used to track all cases of information mismatch in non-intrusive manner.

  • 1.9 core salaried tax payers are informed every quarter of the amount of TDS deposited by their employers.

Initiatives in Ease of Doing Business

  • Introduction of Presumptive Taxation Scheme for Professionals having income up to Rs. 50 lakhs.

  • Threshold for Presumptive Taxation Scheme for business income raised from Rs. 1 crore to Rs. 2 crore

  • Companies located in International Financial Services Centre (IFSC) have been exempted from Dividend Distribution Tax and to pay MAT@9%

Initiatives in Promoting Financial Markets

  • India entered into Foreign Collaboration with 148 countries for Exchange of Information for tax matters

  • Agreement with 39 countries for criminal matters.

  • Changes in the Double Taxation Avoidance Agreements (DTAAs) with Mauritius and Singapore have been incorporated to allow for source-based taxation of capital gains on shares and interest income of banks.

IT Departments Drive Against Black Money

  • Enactment of the Black Money Act, 2015

  • Comprehensive Amendments to the Benami Act 1988

  • Operation Clean Money

  • Intense follow-up of demonetization data from 9th November 2016 to 10th January, 2017, about 1100 searches were made resulting into seizure of Rs. 610 crore including cash of Rs. 513 crore.

  • Undisclosed income of Rs. 5400 crore was detected and about 400 cases referred to ED and CBI for action.

Initiatives for Promoting Less Cash Economy

  • Penalty for cash receipt of Rs. 2 lakh or more

  • Limit of cash donation to charitable trusts reduced from Rs. 10, 000/- to Rs. 2000/-

  • No cash donations of Rs. 2000/- or more to political parties.

Important Tax Data

  • Revenue collections in case of direct taxes rose to Rs. 8, 49, 818 crore during the Financial Year 2016 - 17 at a growth rate of 14.5 per cent.

  • Net collections up to 18th September 2017 in the Current Financial Year 2017 - 18 rose to Rs. 3.7 lakh crore with a growth of 15.7%.

  • Number of taxpayers increased significantly from 4.72 crore in financial year 2012 - 13 to 6.26 crore during the Financial Year 2016 - 17.

- Published/Last Modified on: November 5, 2017

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