CA Umesh Sharma

CA Umesh SharmaArjuna (Fictional Character): Krishna, Income tax department on 17th July 2015 has given target to find “New Taxpayers” to the Chief Commissioner of Income Tax. The success of cinemas is measured through its collection in crores. Similarly many keeps target of crores. So please explain what is this Target of Taxpayers and what is given in it?

Krishna(Fictional Character): Arjuna, recently released 2 famous movies i.e. Bajrangi Bhaijaan and Bahubali has kept target of crores, like that income tax department has given target of finding 1 crore New Taxpayers to the Chief Commissioners. The department has given this target this target for the year 2015-16. Due to this crores of tax will be collected and tax evaders will be plucked. The officer has to work like hero’s to find out the taxpayers. To achieve the target of 1 crore new taxpayers the department has allocated the target to the officer as per the region. The target of 1 crore New Taxpayer is divided as for Andhra Pradesh and Telengana-7,93,427, Bihar and Jharkhand-4,97,207, Delhi-5,32,218, Gujrat-7,86,459, Karnataka and Goa-6,22,602, Kerla-3,55,848, Madhya Pradesh and Chattisgarh- 4,68,778, Mumbai-6,23,867, Nagpur-1,70k2,799, North East Region-1,77,103, North West Region-9,30,911, Odisha-1,98,129, Pune-10,14,418, Rajasthan-4,64,152, Tamil Nadu-7,64,396, Uttar Pradesh(East)-4,32,956, Uttar Pradesh(West)- 4,74,925, West Bengal and Sikkim-6,91,806. In this main target is to find “New Taxpayers”

Bajrangi_Bhaijaan_PosterArjuna:    Krishna, Why did the department kept the target of finding New taxpayers?

Krishna: Arjuna, in the population of 121 crore approx. 5 to 6 crore people are filling income tax return. It means majority of people does not pay tax and also don’t follow the law. Income tax department collect taxes from taxpayers following laws by giving notice, assessment, raid, etc. but the defaulters are left untouched. Due to this it is said that “Jo Kar bhar Raha wohi Mar Raha hai”. To stop this department has given the target to find the “New Taxpayers”. Earlier it was difficult to find the new taxpayer but now-a-days due to computerization in all corners it is easy for the department to detect and find the new taxpayers. Further, bank and other government organizationsgive information to the department due to which it becomes easy to find defaulters.

Arjuna: Krishna, what strategy has been followed by the department to achieve the target of New Taxpayers?

Krishna: Arjuna, as per the circular issued on 27th July the policies to achieve the target are as follows:-

  • To find the taxpayers the department has classified the taxpayers in Professionals, Businessman and Employees. The department will conduct the meeting with Professional Bodies, Trade Association, etc. for getting data.
  • Non Filer Monitoring Systems(NMS): In this two parts are made which is NMS-1 and NMS-2, in this, the one who have not filed the return and their information of transactions is received by the department will be tracked. For e.g. if the assessee has made high value transactions from bank account or make the registry of property then this information is received by the Income tax department and the department checks whether the person has filed the return or not, through this department will catch the tax evaders. The deadline for this is July 31, 2015. Under NMS-3 Available on Actionable Information Monitoring System deadline is September 30, 2015.
  • Non PAN Data: As per the PIN code or other online information Income tax Department will find non-taxpayers. Income tax officer and special unit will give the information of Non-PAN holder.
  • TDS Defaulter: Income tax department will make the TDS Defaulters to file the return. Further information will be taken from the TDS officers and tax evaders will be tracked.

Arjuna: Krishna, What precautions taxpayer should take?

Krishna: Arjuna, the taxpayer should pay the tax as per the law and should file the return. All the transaction should be recorded in the Books. In the Books of Accounts all the bank account and the transactions made through it should be disclosed. None of the bank account should be kept out of the books.

Arjuna: Krishna, What one should learn from this?

Krishna: Arjuna, It will be fruitful for the country to find new taxpayer for the financial growth of the country. Through New taxpayers, tax collection will increase and number of taxpayer will be increased. Due to this burden of tax on existing taxpayers will be reduced. But while doing this taxpayer should not be hurted. Tax should be collected like honeybee collects honey without hurting flower. In Bajrangi Bhaijan the target was searching home of the girl, in Bahubali the target was to search his identity and income tax officers target is to search new taxpayers.

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