‘We could provide relief to people if tax base was wider’
The Hindu
‘I don’t want to tinker with my tax every year, that isn’t good’
It would be much easier for the government to provide relief to people if the tax base was wider, says Revenue Secretary , noting that four crore people don’t file returns though the tax department gets some TDS collections on their account. With major customs duty rationalisation done and corporate tax settled, the government hopes to finish some pending reforms in personal income tax and GST, creating a stable tax regime for the next decade. Excerpts:
The only new tax we have is the crypto tax. I don’t know how much it will bring but the tax regime has been explained. We are hoping as the economy keeps recovering and GDP keeps growing, the revenues should come as the capex kicks in.
We are also better placed now on both, direct and indirect taxes, in ensuring compliance and getting information on tax payers. This Budget introduces certain clauses — if a person has not filed his return even for one year and has a TDS (tax deducted at source) of ₹50,000 in a year, that TDS will double. If you get a perk from a company which claims it as business expense, it must be added to the recipient’s income. We have taken care of bonus, and dividend, stripping, tapped by high-income groups and corporates. So, we are looking at the lanes taxpayers are using and as we close that lane, he takes another. With all the information that we have, and are sharing with the taxpayer as we have no intention of giving him surprises or trouble him, our revenues should be fine. If you ask me what is the new tax, I don’t want to tinker with my tax every year. That itself is not good and is complained about. I can’t have my tax policy being dictated by rating agencies. Earlier, they said we are not giving money to people directly. I used to tell them, ‘You say I am worried about my fisc, [but] once my fisc goes, then you will say, ‘Fisc, Fisc, Fisc!’ Now, they are talking of borrowings and fiscal deficit.