The Hindu Business Line : CBDT keen to deepen collection, widen tax base

THE Income-Tax Department has set for itself an internal goal of increasing the number of assessees declaring total income above Rs 10 lakh by 50 per cent over the number existing as on March 31, 2005.

As on March 31, 2005, there were only about 85,000 individuals who had an annual total income of over Rs 10 lakh.

This forms part of the action plan formulated by the Central Board of Direct Taxes (CBDT) for the current fiscal (2005-06).

Informed sources said the tax department had also set for itself an internal goal on the issue of widening of tax base. The department wants to ensure that the number of new assessees added for 2005-06 is 15 per cent more than the number of new assessees added last year.

The CBDT plans to adopt non-intrusive methods to detect tax evasion. It has decided to undertake analysis of data available from the Central Economic Intelligence Bureau, the Centre for Monitoring Indian Economy and also the Online Tax Accounting System. "We will come up with analytical tools for countering tax evasion," Mr Berjinder Singh, Chairman, CBDT, said. The Annual Information Returns (AIR) would also provide the department with ample information on high-value transactions that could be intelligently analysed for further action, sources said.

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