Tax dept to send notices to 35k assessees

Finance Minister P Chidambaram today said the revenue department will send tax notices to 35,000 assesses next week, beefing up efforts to reach the collection target for the fiscal.

"We have issued notices to 35,000 people saying that on the basis of information we have, you should have filed your return. Another 35,000 notices are going next week," he said in a TV interview.

He said the tax department has information about people's expenditure patterns and their financial transactions.

"You cannot hide any longer ... Therefore, today the best policy is to admit your income and pay tax... The tax base will rise this and we will find more people admitting to more income," he said.

The government proposes to collect over Rs 5.65 lakh crore from tax revenues as per revised estimates, marginally lower than Rs 5.70 lakh crore budgeted for the current fiscal.

The gross collection of direct taxes stood at over Rs 4.55 lakh crore during the April-January period of current fiscal.

On taxing the super-rich, Chidambaram said, "It was indeed shocking that there are only 42,800 persons in this country, that includes individuals, HUF, firms, associations of persons, admitting to a taxable income of Rs one crore and above".

Chidambaram in Budget has proposed a 10 per cent surcharge on people or entities with taxable income of over Rs one crore.

"I am confident that if more people heed my advice (and disclose true income), there will be more who join the ranks of people who have high income. There is no shame in having a high income," he said.



BUDGET 2013:Corner Office Bytes

''The FM projects total expenditure to rise by 16.4% yoy in FY14 (compared to 9.7% in FY13) which means he’s banking on higher tax revenues and asset sales to achieve the fiscal deficit of 4.8%''- Amar Ambani, Head of Research, India Infoline Ltd.

"It is disappointing that the finance minister has not removed the tax anomaly between branded and unbranded fuel, given that such fuel have been proved to increase engine efficiency and enhance their life, thereby reducing consumption."- L K Gupta, MD & CEO, Essar Oil

''The progress in fiscal consolidation is indeed welcome. At the same time, the budget has articulated various measures to facilitate and boost investment in the country, such as the investment allowance deduction and ensuring fuel supply for thermal power plants''-
Chanda Kochhar, Managing Director & CEO, ICICI Bank

''There are proposals for widening RGESS and different classes of portfolio investors. Distribution reach will be enhanced by streamlining KYC norms and allowing mutual fund distributors to become members of stock exchanges. These will help mobilization by MFs''.-
Debasish Mallick, MD & CEO, IDBI MF

"The move to enhance allocation for rural development including integrated watershed programmes, crop diversification programmes and Nutri-Farms as well as creation of a national Livestock Mission will go a long way in creating rural sustainable livelihoods".-
Y C Deveshwar, Chairman, ITC Limited

"The fiscal deficit of 4.8 per cent for fiscal 2014 appears realistic and the dedicated debt exchange is expected to further deepen the bond market. But the Union Budget has not given any incentives for savings,"- George Alexander Muthoot, Managing Director, Muthoot Finance Limited