The Income Tax department is looking to bring rural traders and others into the tax net. The department which is attempting to expand the taxpayer base in the country will now focus their attention on a large swathe of rural businesses that have so far remained untouched.
“We are planning to increase the taxpayers base. A number of taxpayers and assessees that the department would include will be from the rural areas,” CBDT Member (Revenue) Durgesh Shankar told PTI.
There are a large number of people who do not pay tax.
Tax avoidance is a great worry and the department would strengthen the mechanism to include such assesses in the income tax fold, Shankar said.
The I-T department has found that the income generated from numerous kinds of businesses conducted in rural areas can be brought under the tax net.
Good.
It is understood that the rural mass is equal to their urban counter parts.
The tax so collected should be used to improve the infrastructure of the rural areas so that the difference between rural and urban diminishes.
Once, the tax base is enlarged, the tax rate hopefully should come down.