Tax defaulters beware. The income tax department is considering publishing the names of habitual tax defaulters with large tax demands pending.  According to official sources, the department is planning to compile a list of all cases, where there is a tax demand of over Rs 1 crore with no pending appeals. The information, along with names of the defaulters, will then be published in newspapers or other media. The defaulters will include both individual as well as corporate assessees. While the proposal is yet to get approved, the Central Board of Direct Taxes (CBDT) is confident of its likely utility.
“Once their names are out in public domain, we expect most of these defaulters to pay their arrears simply out of shame. More importantly, we feel that it will also discourage people from evading taxes as they too would fear that their names could get published,” an official said.

The CBDT is in fact empowered under section 287 of the Income Tax Act, 1961 to publish names of defaulters. “If the Central government is of the opinion that it is necessary or expedient in the public interest to publish the names of any assessees and any other particulars relating to any proceedings [or prosecutions] under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit,” the act states.

While the department has not made any estimates of the amount of pending arrears they’ll be able to recover, the move could bring in big money. As per the Budget document, Rs 33,034 crore of undisputed tax revenues over a 10-year period is yet to be collected by the department. Of this, Rs 16,200 crore is corporate tax demands, Rs 16,834 crore is unrealised income tax.

The names of top tax defaulters occasionally come out in public domain, through questions raised in Parliament or state legislatures, but this is the first time that the CBDT is thinking of publishing an all-India list.

The move is necessitated to some extent because of the low growth in direct tax collections. In a year when the CBDT is expected to collect an unprecedented Rs 4 lakh crore, direct tax receipts during the first seven months of the current fiscal grew a mere 3.92% to Rs 1,73,447 crore.

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0 responses to “Income tax department considering publishing the names of tax defaulters”

  1. jerry godwin says:

    Swiss Bank of India.

    The topic sounds absurd. But the present systemic approach of Finance Minister for channeling public money in to the pockets of only 29 industrialists through annual central budget, makes one think that Swiss Bank of India is in the making or is already in existence.

    The Budget-: Common Indian never bothers to understand the issue outside his field of work and for him the Budget is difficult subject. When we talk about budget of India, we are only concerned with how much is the tax relief given by the Government in the new budget and not all bothered that how the Government is sucking the money out of the pockets of poor people.

    Budget 2010-11:- What is Budget? Income minus expenditure, gives saving. Saving is must because it is indicator of progress. If the budget is deficit (loss), then country can’t have positive growth rate at all.

    Mr. Pranab Murkhjee has indicated that he wants to change the appearance of Indian Currencies, so that it will become strong like dollar, pound and euros, but strength of any currency depends only on its purchase power and not on its appearance. Is Pranab Murkhjee is that idiot to declare so? In this budget, there is stress on privatization and tax exemption to capitalists. Rs.20,000 crore tax will be collected from industrialists and Rs.50,000 crore will be collected from common man. Budget can increase or decrease the inflation. When the above budget are deficit, then there is no reduction in price of any commodity. Thomas Jefferson, Ex-President of America has rightly said that “Capitalist has no Nation” and this is the result of inflation. For example,

    1) Sugar :- Considering all expenditure for manufacturing and distribution and profit, the cost of sugar for consumer should be Rs.19/- per k.g. even after giving Rs.3,000/- per TON to the farmers of sugar cane. Presently, the cost of sugar is Rs.48/- and the farmers are getting only Rs.2,000/- per TON. This is because most of the sugar factories are owned by Politicians and their relatives.

    2) In the year 2007, Finance Minister P. Chindabaram declared that the government will open 5 lakh additional classes in various schools and appoint 1.5 lakh additional teachers. The problem with this is there will be one teacher attending three classes. After this declaration there is no action for recruitment of teachers. Then what will be quality of education in such schools. Will that child stand in any competition with children from private school? This is actually segregation at grass root level. They don’t want our children to have proper education for higher competition. They only want to give our children only marginal education enough for serving them properly. Mukesh Ambani gives letter to government recommending that the government should spent less on education by which the government can save Rs.2000/- crore per year.
    Growth Rate:- Pranab Murkhjee declared that the growth rate for the year 2009-10 is +7.9%, whereas Professor Surjeet Bhalerao and Prof. Iyer have calculated in consideration of production, education, health and other parameters that the growth of India is -0.36% & -1.37% respectively. So, here is a cheating that the growth rate declared to the nation 9.2 units more than it actually is. This is done because, if they declare that the growth of India is always negative, then they themselves would declare that they are incapable to run the Government. Further, higher growth rate is shown to allow the government to do more expenditure and give more subsidies to industrialists. Mr. D.K. Joshi and Mr. Mohan Sabnis are economic analysts for RSS and they have declared that there is 16% decrease in kharip crop production this year. Then, how can the growth rate be positive.
    India under globalization is implementing work of privatization, which it calls disinvestment. Liberalization means relaxation in taxation to investors and it is only beneficial to business community specific.
    While budget preparation, the Comptroller Auditor General has released statement of taxes and loans, wherein they have declared that in the year 2009-10, the government has exempted the taxes to industrialists for Rs.5,40,269 crore rupees. This is exercised under Backward Area Industrial Package schemes with Incentive to Industrialists in form of Tax Deferral or Exemption for first 10 years. Industrialists smartly wind up the rural unit after enjoying tax holiday of these 10 years. Following the chart for last three years or tax exemption given and the fresh loan taken to repay the interest on earlier loan.

    Year Budget (in crores rupees) Taxes received(in crores rupees) Tax exemption to businessmen (in crores rupees) Fresh loan taken to cover tax exemption (in crores rupees)
    2010-11 11,08,749 7,46,751 4,50,000 4,57,143 (Proj)
    2009-10 10,20,838 6,41,079 5,40,269 4,91,063
    2008-09 7,50,884 5,07,150 3,50,000 3,06,000
    2007-08 7,09,373 4,31,773 2,85,282 1,68,101

    Above figures only for last three years, but the same is in practice from many years. Only because the voters were never interested in reading and understanding the budget, they were continuously cheated which has resulted in total loan of Rs.34,95,152 crores rupees as on date. Because of this, Government has to spend 19% of its total annual budget only on repayment of interest on this loan and has to take fresh loan for the same. If even today, the government decides to stop tax exemption and repay the government loans, it is possible to nullify all the loans in seven years time and be free from loans for ever. But, Congress or BJP will not do so, as they take money from businessman for elections required to purchase votes from the citizens and repay the same to the industrialists by way of tax exemption.

    If the tax exemptions are not given to industrialists, then the government is in a position to earn 5,40,000 crore rupees per year. On one hand, government is saying that they don’t have money for education and therefore they are privatizing the educational sector. Are they not cheating 85% of Indian population by giving highest tax exemption to few industrialists?

    As per Pranab Murkhjee for industrial production of Rs. 7,46,749 crore rupees, India has to spent Rs. 11,08,749 crores rupees. If Rs. 5,40,269 crore is given to farmers, then there will be production of more than Rs. 12,00,000 crore rupees. But, because they want to kill the farmers, any Government will never do it. Under liberalization, Rs. 79,544 Crore income tax is exempted. Parallely for 85% people, Rs.24,437 crore are allotted under various social schemes and Rs.12,134 crore are actually spent; the rest of the amount is diverted.

    In budget there are provisions for business community and common man and there are various schemes to be implemented for historically socially deprived communities. But, government implements such scheme marginally, i.e. hardly 10% of the allotted amount against each scheme. The unused amount is diverted for non-social schemes even when the diversion of fund against social scheme is not permitted as per the Constitution of India.

    Government further declares that by selling the shares of public sector units the money earned will be used for education of people. Conversely, the government is declaring to the people of India that if you do not allow for selling of government companies, then there is no money for education of children.

    Privatization:- Chapter-27 to 30 of Budget 2010-11 declares that all the Public Sector Units will be sold out by 2020. In the year 2000, Maruti was sold at Rs.500 crores, whereas it was earlier declared by the Government that only 10% of its shares will be sold out. Assets of Indian Oil Corporation are worth Rs.1,15,000 crore, but this Government is all set up to sell Indian Oil at Rs.15,000 crores. Today, the share price of all the PSUs is 2,98,269 crore rupees and the total value is Rs.29,83,730/- crores. But, it is learnt that the Government by selling the shares in parts, is planning to sell off the companies not at its total cost, but only at its share value. By this, the companies will be sold off only at 10% of its actual cost.

    Additionally, Industrialist till year 2000 had taken loan of Rs.1,43,000 crore from Public Sector Banks. Government can easily give notice to them and collect this public money, but this money has been written off by the Banks under various reasons because this money is given by the industrialists to Congress/ B.J.P. to purchase public votes in the general elections, i.e. public money is used to purchase public votes.

    Result of Privatization:- Government has declared that there shall no audit for any organization or individual, whose annual earning is upto Rs.60 lakhs. This facilitates the rich to hide his black money. Sen Gupta Report states that 83 crore people are below poverty line, out of which 29 crore people earn Rs.6/- per day. 26 crore people, earn Rs.11/- per day and 28 crore people earn Rs.20/- per day. The Government earlier claimed that with liberalization there shall be job opportunities and better earnings to the people of India, but this figures reflects exactly opposite. This is the result of privatization for last 20 years and because of this, farmers are committing suicides.

    Last year, 61,09,664 people were arrested by police in various crimes. Out of which 26,89,284 were below age 30 and 95% of them were OBC, SC, ST. This figure shows that because of unemployment, the youth has gone for unlawful activities. Ex. Every morning from 09.00 a.m. to 11.00 a.m. at Malad and Goregaon Railway Stations you will find thousands of young boys waiting for daily wage appointment. If they don’t get jobs (even under NERG) for the day, they go for illegal activities.

    The government has declared that they shall set up OBC Development and Financial Corporation for which they have allotted Rs.50 crore per year. The population of OBCs in India is 60 crore. So the government does not even give Rs.1 per year on OBC citizen and he is silent about it.

    Where the money is rotated and how it is affecting us? Abhijeet Sen Committee has declared that the Hundi market should be closed. Because all the black money is rotated in Hundi market only and alone Mukesh Ambani is having Rs.2 lakh crores in the Hundi Market. And this market decides the cost of each product on monthly basis. It only works on our money, because we pay taxes included in the MRP of the product. The manufacturer gets these entire amounts which he is required to pay to the government. But, government is giving the business huge tax exemption. So, this exempted amount he uses in Hundi market. When the government is giving tax exemption to industrialists and he increases the cost of commodity, this action only ensures making businessman more rich and common man more poor. This mechanism was in detailed explained in Loksatta article heading “All is not well”.

    Setting up of new industry:- If 1000 crore rupees company is to be set up by a businessman, then he invests only Rs.200 crore from his pocket, borrows Rs.400 crores from government financial institutions and takes Rs.400 crores from share market. With 20% investment, he becomes 100% owner.
    Farmer relief package:- Government declared Rs.70,000/- crores package for farmers. But chunk of the money is still remaining in the banks. Only Rs.500 crore have been distributed to the farmers. Whereas, Rs.5,00,000/- crores per year are already given to businessman community every year as tax exemption. Rajiv Gandhi once when was in Mumbai declared that only 20% of the social fund reaches to common man. On the contrary, Pranab Mukherjee in his budget speech has said that the government has ensured that each rupee spent by the government is reaching to the common man.

    In 2006, Government reduced custom duty on ‘NAPTHA’ by 10%. By which, Government lost Rs.600 crore and Ambani alone was benefited by Rs.500 crores. With this example, it has to be concluded that the businessman are finalizing the tax to be implemented and gives it to Government for education. Reliance Communication collected ISD rates from their customers and paid STD rates to BSNL. By which, BSNL lost Rs.620 crores. The matter when went to the court and the court gave notice to Reliance to pay Rs.184 crores. This judgment also certifies that Reliance company is a criminal organization.

    Family Affair:-In India there are 1,00,000 people whose assets are more than Rs.5 crore and these people are owner of 50% of Indian Wealth. Out of 543 MPs, about 300 are Crorepatis. State and Central politics is dominated by only 1000 families. High Court and Supreme Court Judges are appointed from 200 families only.

    While presenting the budget for the year 2005-06, the then Finance Minister P. Chidambaram, on 20.08.2005 has declared in Loksabha which was also printed by Loksatta, Sakal & shown on Doordarshan that there are 5,76,000 major temples in India, who is in custody of 12,800 Tonne Gold, i.e. 128,00,00,000 Tolas, i.e. Rs.192,0000 crore. These temples further receive annual cash donations of Rs.12,01,000 crore. The temples of India are in possession of Gold four times more than the Gold in possession of entire America. Therefore, on any day the temple is in possession of minimum 31 lakh crore rupees. If the jwellery, land cost is added then this figure goes upto Rs.50 lakh crore, which is equal to annual Indian Budget for 10 years comples, i.e. if this money is utilized, then the country need to borrow anything for the next 100 years. The question arises here is the people who are in possession of this temple wealth, what are they doing with this money. It is learnt that they use this money for sending their children for higher education and settling them in foreign countries.
    So, the Swiss Bank of India is the corpus of industrialist and politicians.

    The question is, Why do they do it and make 85% Indians suffer continuously for 60 years from independence?

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