Targets for collection of taxes- Not essential


India adopts a progressive system of taxation where the tax rate depends on the level of income earned during a financial year. Taxes paid by the taxpayers are utilised for the betterment of the nation as a whole. Since a majority portion of direct taxes is paid to the credit of the Government through TDS and advance tax, the possibility of evasion of tax gets meagre in the private sector. Also, today the assessee wants to voluntarily comply with the existing laws to avoid any hassles. In such a scenario, it is difficult to understand as to why targets are set for Assessing Officers for collection of tax. The Government is not a profit making organisation. It belongs to the people of India, works for the people and is formed by the people of India. In order to achieve the yearly targets, all means, fair and unfair, are being adopted. There have been instances which have been reported to us as to how, in order to complete targets the genuine assesses are being harassed. This creates an unhealthy environment. One cannot enforce on  collection of taxes when there is no income and then the taxpayer has to go round and round to get a refund of the extra taxes paid by him.


Internal mechanism is to be developed to ensure adherence of the timelines mentioned in the Citizens charter of the Department about performance of services and adherence to the timelines should be made as a part of performance appraisal of the concerned officer.

Source-  ICAI Pre- Budget Memorandum–2018 (Direct Taxes and International Tax)

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June 2021