{"id":9174,"date":"2017-02-01T13:53:09","date_gmt":"2017-02-01T13:53:09","guid":{"rendered":"https:\/\/apnlive.com\/?p=9174"},"modified":"2017-08-11T18:13:52","modified_gmt":"2017-08-11T12:43:52","slug":"tax-collection-woes-government","status":"publish","type":"post","link":"https:\/\/apnlive.com\/india-news\/tax-collection-woes-government\/","title":{"rendered":"Tax Collection Woes of the Government"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]By Parsa Venkateshwar Rao Jr<\/strong><\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

Jaitley in his speech said, \u201cWe 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.\u201d<\/span><\/p>\n

And he argues, \u201cThe 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.\u201d<\/span><\/p>\n

Then he referred to the preliminary analysis of data with regard to deposits in the Rs 1000 and Rs 500 denominations: \u201cDuring the period November 8 \u00a0to 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.\u201d<\/span><\/p>\n

He concluded: \u201cThis 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.\u201d<\/span><\/p>\n

Lead Picture<\/strong>: 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<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[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 […]<\/p>\n","protected":false},"author":4,"featured_media":9177,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1497,2046],"tags":[1778,291,1600,2310,2308,2309],"yst_prominent_words":[],"ppma_author":[140543],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/d2r2ijn7njrktv.cloudfront.net\/apnlive\/uploads\/2017\/02\/lead1.jpg","jetpack_sharing_enabled":true,"authors":[{"term_id":140543,"user_id":4,"is_guest":0,"slug":"apnnewsdesk","display_name":"APN Live","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/478eacb893eda88aa6ed8d99b005bf58?s=96&r=g"}],"_links":{"self":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/9174"}],"collection":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/comments?post=9174"}],"version-history":[{"count":0,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/posts\/9174\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media\/9177"}],"wp:attachment":[{"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/media?parent=9174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/categories?post=9174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/tags?post=9174"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/yst_prominent_words?post=9174"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/apnlive.com\/wp-json\/wp\/v2\/ppma_author?post=9174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}