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Tax Collection Woes of the Government

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Budget 2017-18

[vc_row][vc_column][vc_column_text]By Parsa Venkateshwar Rao Jr

Finance Minister Arun Jaitley in his 2017-18 Budget speech in the Lok Sabha on Wednesday explained the rationale of demonetisation and the push towards digital transactions by citing the tax evasion figures of those who do not file returns at all and those who under-quote their profits.

He said of the 4.2 crore who were employed in the organised sector, only 1.74 crore files tax returns, and out of the 5.6 crore individual enterprises and firms doing small business, only 1.81 crore filed returns. And among the 13.94 lakh companies which are registered till March 31, 2014, only 5.97 lakh companies filed returns for 2016-17. And of the 5.97 lakh companies which have filed returns, 2.76 lakh companies have shown losses or zero income. Among those which showed profit, 2.85 lakh companies have shown less than Rs 1 crore in profit, 28,667 have shown profits between Rs 1 crore and Rs 10 crore, and only 7781 companies showed more than Rs 10 crore in profit.

Of the 3.7 crore individuals who have filed tax returns in 2015-16, 99 lakh showed the exemption limit of Rs 2.5 lakh per annum, 1.95 crore showed an annual income between Rs 2.5 lakh and Rs 5 lakh, 52 lakh showed income between Rs 5 lakh and Rs 10 lakh and only 24 lakh showed annual income more than Rs 10 lakh. And of the 76 lakh who showed income above Rs 5 lakh, 56 lakh were in the salaried class. Only 1.72 lakh showed income of more than Rs 50 lakh per annum.

Jaitley in his speech said, “We can contrast this with the fact that in the last five years, more than 1.25 crore cars have been sold, and the people who flew abroad, either for business or tourism, is 2 crore in the year 2015. From all these figures we can conclude that we are largely a tax non-compliant society.”

And he argues, “The predominance of cash in the economy makes it possible for the people to evade their taxes. When too many people evade taxes, the burden of their share falls on those who are honest and compliant.”

Then he referred to the preliminary analysis of data with regard to deposits in the Rs 1000 and Rs 500 denominations: “During the period November 8  to December 30 , 2016, deposits between Rs 2 lakh and Rs 80 lakh were made in 1.09 crore accounts with an average deposit size of Rs 5.03 lakh. Deposits of more Rs 80 lakh were made in 1.48 lakh accounts with average deposit size of Rs 3.31 crores.”

He concluded: “This data mining will help us immensely in expanding the tax net as well as increasing the revenues, which was one of the objectives of demonetisation.”

Lead Picture: The Union Minister for Finance and Corporate Affairs, Arun Jaitley along with the Minister of State for Finance and Corporate Affairs, Arjun Ram Meghwal arrives at Parliament House to present the General Budget 2017-18, in New Delhi. Photo: PIB[/vc_column_text][/vc_column][/vc_row]

India News

Pakistan violates LoC ceasefire again, first firing reported in Poonch sector

India-Pakistan tensions rise after first targeted ceasefire breach in Poonch sector following Pahalgam terror attack. Indian Army retaliates strongly.

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LOC cross firing

Tensions between India and Pakistan have escalated once again following a fresh ceasefire violation by Pakistani forces along the Line of Control (LoC) in Jammu and Kashmir. Officials confirmed that for the fourth consecutive night, Pakistani troops resorted to unprovoked firing, drawing a strong response from the Indian Army.

The Indian Army stated that during the night of April 27-28, Pakistani posts initiated small arms fire across the LoC, targeting areas opposite Kupwara and Poonch districts. The army’s retaliation was described as “swift and effective.”

This incident marks the first targeted ceasefire breach by Pakistan in the sensitive Poonch sector. The latest exchange of fire follows a deadly terrorist attack in Pahalgam, Jammu and Kashmir, last Tuesday, which claimed 26 lives.

The attack has severely strained diplomatic ties between the two countries, especially after it was linked to a terror group associated with Pakistan-based Lashkar-e-Taiba. Officials described it as the deadliest attack in Jammu and Kashmir since the Pulwama tragedy.

In response, India has taken decisive measures, including the expulsion of Pakistani military attaches, suspension of the long-standing Indus Waters Treaty, and closure of the Attari land-transit route. These actions were approved during a high-level meeting of the Cabinet Committee of Security chaired by Prime Minister Narendra Modi. The Prime Minister has pledged that all terrorists and their supporters responsible for the Pahalgam attack will be “identified, tracked, and punished.”

Pakistan, on the other hand, retaliated by suspending all existing bilateral agreements with India, including the historic Simla Agreement.

Meanwhile, the police have intensified efforts to track down the terrorists involved in the Pahalgam attack. Sketches of three suspects have been released: Hashim Musa alias Suleman and Ali Bhai alias Talha Bhai, both residents of Pakistan, and Adil Hussain Thoker, a native of Anantnag district. A reward of ₹20 lakh has been announced for credible information leading to their capture.

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What is SACHET, the app PM Modi mentioned in Mann Ki Baat?

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PM Modi on BJP Foundation day

During his Mann Ki Baat broadcast on Sunday, Prime Minister Narendra Modi highlighted the Sachet app, an innovative alert system developed by the National Disaster Management Authority (NDMA).

Rolled out across India, Sachet harnesses geo-intelligence to provide near-instantaneous disaster warnings through diverse channels like SMS, web browser notifications, and RSS feeds.

The app’s website advises users to stay alert for SMS alerts marked with the “XX-NDMAEW” header. Beyond disaster alerts, Sachet offers weather updates and allows users to track multiple locations, delivering notifications directly to desktops or laptops. Subscribed entities, such as news outlets, can access alerts via RSS feeds to amplify public warnings.

The app has gained significant traction, with roughly 5.4 crore downloads in Uttar Pradesh, 4.6 crore in Delhi, and 1.1 crore in Maharashtra, underscoring its vital role in bolstering disaster readiness.

Modi praised Sachet as a testament to India’s use of technology to empower citizens, ensuring timely information to mitigate risks during emergencies.

The Prime Minister also addressed the tragic Pahalgam terror attack in Jammu and Kashmir on April 22, which claimed 26 lives, predominantly tourists, in the tranquil Baisaran valley.

The investigation has been handed over to the National Investigation Agency (NIA), with the Ministry of Home Affairs urging a swift probe into one of the region’s most lethal civilian attacks in nearly two decades.

The NIA, in a press release, outlined its approach: “Under the supervision of senior officers, including an Inspector General, Deputy Inspector General, and Superintendent of Police, our teams are meticulously interviewing eyewitnesses to piece together the chilling sequence of events.”

The agency is delving into granular details to identify the culprits, linked to The Resistance Front, an affiliate of the Pakistan-based Lashkar-e-Taiba. As the NIA intensifies its efforts, the focus remains on securing justice and fortifying security, especially with the Amarnath Yatra scheduled to commence on July 3, a time when Kashmir expects a surge in visitors.

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NIA takes over Pahalgam terror attack case from J&K Police

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The National Investigation Agency (NIA) has assumed control of the investigation into the devastating Pahalgam terror attack, taking over from the Jammu and Kashmir Police to probe the April 22, 2025, assault that killed 26 tourists, including one Nepali citizen, and injured over three dozen others.

The agency registered a fresh First Information Report (FIR) late Saturday, April 26, following directives from the Ministry of Home Affairs’ Counter Terrorism and Counter Radicalisation (CTCR) division, prompted by the attack’s severity and the involvement of The Resistance Front (TRF), a proxy of the Pakistan-based Lashkar-e-Taiba (LeT), which claimed responsibility.

Five days after the attack and four days after an NIA team, led by a Deputy Inspector General, visited the Baisaran meadow attack site near Pahalgam, the agency formally launched its probe. The team had initially supported local police in investigating what is considered the deadliest civilian attack in Jammu and Kashmir in nearly two decades.

The NIA is now tasked with conducting a comprehensive assessment, collecting forensic evidence, and identifying the perpetrators of the 2 p.m. massacre, which shattered the tranquility of a popular tourist destination. Helicopters were deployed to evacuate the wounded, underscoring the scale of the tragedy.

The attack coincides with a surge in tourist arrivals to Kashmir, raising concerns ahead of the 38-day Amarnath Yatra, set to begin on July 3. Against this backdrop, intelligence agencies have compiled a list of 14 local terrorists, aged 20 to 40, actively supporting Pakistan-based operatives with logistics and ground operations.

These individuals, affiliated with Hizbul Mujahideen, LeT, and Jaish-e-Mohammed (JeM), include Adil Rehman Dentoo (LeT’s Sopore commander since 2021), Asif Ahmed Sheikh (JeM’s Awantipora commander since 2022), Ahsan Ahmed Sheikh (LeT, Pulwama, since 2023), Haris Nazir (LeT, Pulwama, since 2023), Aamir Nazir Wani (JeM, Pulwama, since 2024), Yawar Ahmed Bhat (JeM, Pulwama, since 2024), Asif Ahmed Khanday (Hizbul Mujahideen, Shopian, since 2015), Naseer Ahmed Wani (LeT, Shopian, since 2019), Shahid Ahmed Kutay (LeT/TRF, Shopian, since 2023), Aamir Ahmed Dar (LeT, Shopian, since 2023), Adnan Safi Dar (LeT/TRF, Shopian, since 2024), Zubair Ahmed Wani (Hizbul Mujahideen’s Anantnag commander since 2018), Haroon Rashid Ganai (Hizbul Mujahideen, Anantnag, trained in PoK in 2018), and Zakir Ahmed Ganie (LeT, Kulgam).

Security forces have intensified operations in South Kashmir, particularly Anantnag and Pulwama, targeting these operatives to disrupt terror networks. The NIA is also exploring links between these 14 individuals and five terrorists involved in the Pahalgam attack, including three Pakistani nationals—Asif Fauji, Suleman Shah, and Abu Talha—whose sketches were released earlier, and two local operatives, Adil Guri and Ahsan, with a ₹20 lakh bounty on each.

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