Ministry of Finance/Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi-110001

E-mail :

Tele : 23092648 & Telefax : 23092544


F.No.: 310/03/2017-OT   Dated: 12th July, 2017

Dear Principal Chief Commissioner of Income Tax,

Subject: Maximizing efforts for widening of tax base during the current financial year.

Widening of tax base remains one of the important policy objectives of CBDT. Various steps have been taken to increase the tax base and the same have shown appreciable results. It is quite encouraging to note that almost 91 Iakh new taxpayers were added during FY 2016-17. However, considering the increase in economic activities, both in the organized as well as unorganized sectors, there is a large scope for further widening of the direct tax base in the country.

2. Huge opportunities for identification of potential taxpayers have been opened up by data-mining and data-analytics conducted in the wake of Demonetization and Operation Clean Money. It is imperative on the part of the field officers to utilize the data shared with them to bring a large section of the potential taxpayers into the fold of the tax system during the current financial year. For this purpose, the data shared by Systems (under NMS and Operation Clean Money) and inputs from I&C1 may be used for sending request letters to all potential taxpayers expeditiously and the proceedings must be brought to conclusion in a time-bound manner.

3. Apart from centrally disseminated data, local intelligence, inputs from market associations, trade bodies and professional SROs, etc. may also be utilized for identification of non-filers. Awareness meetings and outreach programmes may also be used for supplementing the aforesaid efforts so as to encourage voluntary compliance, especially in Tier 2 and 3 cities.

4. As the regional Heads of the Department, I expect you to develop a regional strategy in line with the specific profile of your Region, together with effective use of centrally disseminated data, to significantly widen the tax base this year. I would review region-wise performance in this area in the month of October, 2017. Meanwhile, you may highlight the work done in this area through your monthly D.O. letters to your respective Zonal Member.

With Best wishes.

Your Sincerely

(Sushil Chandra)

All Principal Chief Commissioners of Income Tax

Copy to: All Members for information and further follow-up.

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