Govt clears air on I-T directive
- View SourceGovt clears air on I-T directive
Seeking to dispel apprehensions that a recent directive to income tax
officers may lead to harassment, government today said the provisions
of the law will be used only against habitual offenders and fly-by-
night hawala operators indulging in massive evasion of taxes.
In the wake of the "internal instructions" directing income tax
commissioners to launch a drive to collect arrears that have touched
Rs 87,885 crore and fears that it would encourage only corrupt
officials, a senior CBDT official said the provisions would be
applied only in cases where assessment proceedings were on and it was
obvious that recovery of the demand would be a problem. The provision
for attachment of property would not be applied to normal tax cases
but only to those persons whose tax arrears exceeded Rs 5 lakh in big
cities and Rs 1 lakh in small cities.
"This is a kind of preventive step against mounting arrears," a top
CBDT official said adding this would also put a stop to tax officials
making a false assessment of taxes which becomes difficult to collect.
Source : The Economic Times dtd. 16.10.2004