8 Point CBDT strategy for maximization of direct tax collections

GOVERNMENT OF INDIA
Ministry of Finance/Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi-110001
E-mail : chairmancbdt@nic.in
Tele : 23092648 & Telefax : 23092544

Dated: 4^th January, 2019

SUSHIL CHANDRA

Chairman, CBDT & Special Secretary to the Government of India

F. No. 380/02/2018-IT (B)

Dear Principal Chief Commissioner of Income-tax,

Subject: Enhanced efforts for maximization of direct tax collections- Special efforts for collection of Regular Assessment Tax.

The position of direct tax collections at the end of December, 2018 shows that as against the target growth rate of 14.7%, net collections are growing at the rate of 13.6%. The position of growth in gross collections is marginally better at 14.1% but still below the required rate for achieving the Budget Estimates of Rs.11,50,000 crore.

2. On review of the trends of growth under different Minor Heads, it is noted that the growth in collection under Regular Assessment Tax (recovery from arrear and current demand) is extremely low at 1.1% as compared to 15.6% growth during the corresponding period last year. Most of the Regions are, in fact, showing negative growth under Regular Assessment Tax (details attached). This is a matter of serious concern and concerted efforts are now required to be made to drive up recovery from arrear and current demand. With a view to maximize tax collections in general and collections under Regular Assessment in particular, the following strategies need to be implemented in this quarter:

(a) Targeted recovery surveys in potential cases where high amount of recovery is likely. Sale of attached properties in appropriate cases by TROs to recover confirmed demand where normal measures of recovery have not yielded results.

(b) Initiation of proceedings under section 179 of the Act in eligible cases to make recoveries of outstanding dues of the companies.

(c) Filing of prosecution under section 276C (2) against persons who are willfully evading payment of outstanding taxes.

(d) Completion of non-time-barring assessments in cases where demand is likely to be raised and collected during the current financial year itself.

(e) Verification of deductors where there is non-payment of TDS to the Government account though TDS has been deducted as well as where there is substantially low TDS as compared to last year including launching of prosecution in cases of substantial default.

(f) Verification of payment of advance tax by the seller of properties in cases where TDS under section 194IA has been made by the buyer.

(g) Monitoring of payment of Dividend Distribution Tax by obtaining information from financial websites, SEBI, etc.

3. Other strategies depending upon the specific characteristics of the region should also be adopted so as to increase collections and ultimately achieve the budget target.

With Best Wishes

Yours Sincerely

(Sushil Chandra)

Enclosure: As above.

All Principal Chief Commissioners of Income-tax

Collection of Regular Assessment Tax as on 31.12.2018