Chidambaram sanctions Rs 195 cr incentive to I-T Dept
January, 18th 2008
For additional revenues mobilised
The Finance Minister, Mr P. Chidambaram, has sanctioned an incentive of Rs 195 crore to the Income Tax Department towards the additional direct tax revenues mobilised in fiscal 2006-07.
Official sources said that the one per cent incentive, amounting to Rs 195 crore, would be utilised for improving infrastructure within the department and also enhancing operational efficiency. There would be more operational vehicles in all ranges of the department, the official added.
The I-T department did not get any incentive for its tax collection efforts for 2005-06 as it fell short of the budget estimates for that fiscal.
This amount would be used for improving the mobility of staff of the department and also enhancing the visibility of the department through model offices etc.
Laptop for officers
All income-tax officers would now get a laptop with Internet facility. Besides reimbursement of mobile bills, there would also be other employee welfare measures such as air-conditioned buses in five metros for staff to commute to their offices, a Finance Ministry official said.
Addressing chief commissioners of income tax here through a video conference, Mr Chidambaram said that the department would need to find better ways and means to utilise the sanctioned incentive amount for a lasting impact on its functioning.
The Finance Minister complimented the chief commissioners of income-tax for the remarkable performance of the department, particularly on the revenue side.
He said that the department had done well in collecting higher revenues in 2006-07 and was performing even better in 2007-08.
Total direct collections were up 42.8 per cent as on December 2007.