Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TDS :: empanelment :: due date for vat payment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT Audit :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company
 
 
News Headlines »
 Income-tax (17th Amendment) Rules, 2017
 GST: One nation, one market, one tax
 Ready or not, businesses brace for biggest-ever tax reform
 Ready or not, businesses brace for biggest-ever tax reform
 Make your inventory and invoicing software GST Ready from Binarysoft
 Filing income-tax returns gets simpler for salaried persons
 Ten rules you must follow while filing income tax returns
 Reforming the income tax tribunal
 How the new system might impact consumers and businesses
 10 ways you get benefited from filing your tax return
 Returns under CGST Act,2017 with Rules

Tax and transparencya
February, 10th 2017

Since demonetisation, the Modi government seems to have made up its mind that the stick works better than the carrot when it comes to ensuring tax compliance. A case in point is the many amendments to the Income Tax Act in the Budget, which enhance the discretionary powers of tax officers, even while diminishing their accountability to the public.

The most contentious of these is an addition to sections 132 and 132A of the IT Act which govern search and seizure operations. These sections allow tax authorities, based on information, to authorise the search and seizure of an assessee’s assets provided they have reasons for “suspecting” and “believing” that a case of evasion is at hand. Judicial rulings have held that the reasons to “suspect” and “believe” must be recorded and disclosed on demand to taxpayers and the appellate authority. But the Budget inserts a new explanation exempting tax officials from disclosing the reasons to any person, authority or even appellate tribunal, given the “confidentiality and sensitivity” involved. The CBDT chairman has justified this on the count that the reasons for raids will still be disclosed to the courts. But the fact remains that this change significantly reduces the accountability of tax officials conducting raids at their first point of contact with the public. That this particular amendment takes retrospective effect from 1962 makes it even more suspect as taxmen can now take shelter under it for all their past actions. Yet another new clause allows investigating tax officers to “provisionally” attach any property belonging to an assessee during a search, and hold on to it for six months without waiting for a go-ahead from the assessing officer. The reasoning offered is that prompt seizures will prevent evaders from disposing of their assets. This may be true, but it presumes that all tax raids are conducted on the guilty. This need not be true always and can result in undue impediments to honest businessmen. Income tax officers have also been allowed to re-open the books of an assessee going back 10 years as against the present six years, on suspicion of undisclosed assets worth over ?50 lakh.

These changes would not be cause for alarm if the tax department was incorruptible and its search and seizure operations were conducted only on concrete evidence. But the tax department’s patchy record in winning disputes and recovering dues suggests otherwise. So, having brought in these provisions, the Centre must now ensure that these sweeping powers are tempered with more judicious use of search and seizure operations. As the Tax Administration Reforms Commission has suggested, non-invasive methods such as surveys of business clusters and mining of industrial and other public databases should first be attempted to identify non-filers of returns. Tax raids should be authorised only in the rarest of cases where evidence of evasion is clear.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions