The revenue department has decided to step up investigative measures like tax surveys to increase compliance by individuals and business assesses. This is also aimed at meeting the collection target.
Sources in the Central Board of Direct Taxes (CBDT) said the department was able to uncover over Rs 2,000 crore of extra income through surveys in 2006-07. We will continue with more tax surveys during 2007-08, a CBDT official said.
The direct tax collection target for 2007-08 is Rs 2,67,175 crore, 17% more than the revised estimate of 2006-07.
No records are available for the entire previous fiscal. But the income tax department had undertaken around 200 surveys until December 2006. The highest amount of money uncovered in a single survey was Rs 25 crore.
Surveys form an integral part of assessment and are conducted by the tax departments investment wing as well as assessing officers when returns filed by individuals and companies are lower compared with their profits. They are conducted only on business premises and are different from income tax raids.
Meanwhile, direct tax collections continued to be buoyant and the department had mopped up Rs 2,16,630 crore till March 29 compared with Rs 1,55,500 crore for the same period in 2005-06.
The revenue department is confident of reaching its revised target of Rs 2,29,000 crore for 2006-07.
Watch Out! Surveys are conducted by the tax depts investment wing and officers when returns filed are lower than profits These are conducted only on business premises and are different from income tax raids Central Board for Direct Taxes uncovered over Rs 2,000 crore of extra income