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Tax authorities will chase 59 lakh non-filers this fiscal and take strong action against tax evaders, including launching prosecutions and even blocking their access to bank loans and cooking gas subsidy, as they try to widen the taxpayer base.
This is part of the Annual Action Plan of the Central Board of Direct Taxes (CBDT) for 2016-17 that was prepared for the annual meeting of tax commissioners. Prime Minister Narendra Modi had asked them to double the tax base to 10 crore.
Setting a target of ₹8,47,098 crore for the fiscal, the CBDT has said appropriate action, including penalty and prosecution, will be taken against non-filers.
“Ensuring compliance from identified non-filers with potential tax liabilities is key to widening of tax base,” the CBDT said. The assessing officers have to send a letter to such non-filers within 15 days of their names cropping up in the system.
The department has implemented the non-filers monitoring system as a pilot project to prioritise action on those with potential tax liabilities.
For widening the tax base, the department also plans to target three types of people — those who have deposited some tax but not filed a return, those who have neither filed returns nor paid tax but have some PAN linked information and lastly those where there is only some non-PAN information.
Calling for developing better criminal investigation abilities, the CBDT said that prosecutions against tax evaders must be launched even in cases involving less than ₹50,000. It has also identified cases of default of over ₹25 lakh for prosecution under section 276CC (non-filing of returns) of the Income Tax Act, 1961.
To tackle tax defaulters, the CBDT, in its Action Plan, has also suggested blocking the PAN of such persons and sharing it with credit information companies to block their access to bank loans.
“These defaulters are not sanctioned any loans or overdraft facility by public sector banks, as the same is bound to become non-performing assets,” it said.
Similarly, it has also suggested sharing the list of such blocked PANs with the Registrar of Properties for not allowing any registration of immovable properties where such PANs.
Cooking gas subsidy should also be withdrawn for such persons, it said.
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