Finance Minister Chidambaram warns service tax evaders to file dues before 31 December
November, 15th 2013
Indian Government has become more assertive over tax collection as the Finance Ministry is struggling with balancing deficits. The Union Finance Minister P Chidambaram on Saturday clearly stated or rather issued a vocal warning to tax evaders.
Chidambaram said that the tax department has identified serious service tax evasions and warned non-filers to complete dues before 31 December 2013. The Finance Minister revealed that the tax department has identified sectors with chronic tax evasion — viz. renting of immovable property, construction, IT, real estate, mining, advertisement, storage and warehouses.
In an attempt to restrict income tax evasion government lately announced a new requirement for those availing HRA exemption. Firming its grip on tax evaders, Central Board of Direct Taxes (CBDT) announced that any tenant will have to now produce PAN number of her/his landlord, if s/he wishes a tax exemption exceeding Rs. 1 lakh annually.
It is so found by the Finance Ministry that out of 17 lakh registered tax filers, only 7 lakh pay the tax. The Union Minister requested non-filers to reap benefits of schemes that waive interest and other penalties. The Ministry is aiming to generate tax revenue during current fiscal of Rs. 180.141 crore.
The Finance Ministry is quite serious about tax collection this time. And its seriousness is evident from the fact that around 10 people have already been arrested across the country pertaining to non-payment of tax. From each offender, more than Rs. 50 lakh were hauled out.