Financial Daily from THE HINDU group of publications
Saturday, Feb 16, 2002
Industry & Economy
CBDT to crack down on defaulting cos
NEW DELHI, Feb. 15
THE Central Board of Direct Taxes (CBDT) is all set to wield the stick on corporates defaulting on tax payments, according to a top official.
The board is planning to take strong enforcement measures, including surveys in the coming weeks, which are also expected to shore up revenues.
The Board is anticipating direct tax collections in the current fiscal to surpass actual collections of Rs 68,305 crore during the previous fiscal.
This figure, however, is lower than the budgeted realisation of Rs 84,800 crore for 2001-02.
The CBDT recently directed its field staff to ensure in-depth scrutiny of certain classes of income-tax returns, irrespective of the limit of 40 cases prescribed earlier.
Adherence to the prescribed limit was inhibitive, since several types of returns were escaping in-depth examination.
The cases to be scrutinised (outside the prescribed limit) include those where additional income has been detected during the course of surveys and cases where definite reports of concealment of income have been received, including those on which reports are received from other enforcement agencies.
Other cases that have also come under scrutiny include those where substantial tax can be realised on the basis of law points which have been decided in favour of the Revenue Department in earlier years, or where the Department has demanded additional tax and is still litigating.
According to official estimates, direct tax collections till February 12 this fiscal stood at Rs 48,253 crore (including a realisation of Rs 488 crore from interest tax).
Of this, corporate tax collections stood at Rs 24,638 crore as against Rs 24,332 crore in the same period the previous year, marking a meagre increase.
The poor performance has been mainly in view of hefty refunds forked out by the Department.
During the period under review, income-tax collections stood at Rs 23,127 crore compared to Rs 22,463 crore in the same period the previous year.
Officials said that tax deducted at source (TDS) collections improved significantly, particularly after changes in the taxation of perquisites.
The CBDT is now optimistic about collections in the current fiscal surpassing actual collections in the last fiscal.
Corporate tax collections touched around Rs 35,696 crore, while income-tax collections topped Rs 35,696 crore in 2000-01. Interest tax collections amounted to Rs 845 crore.
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