Govt sets up panel to trace tax defaulters

Govt sets up panel to trace tax defaulters

A seven-member committee constituted by the Central Board of Direct Taxes (CBDT) will suggest measures on how to recover Income Tax demand from such assesses who are not traceable. It will also examine cases where icome tax dues could not be collected from such assesses who are classified as having no assets or inadequate assets for recovery. The committee will also look into the possibility of putting the list of  “chronic defaulters” in public domain, a statement issued by the Finance Ministry said.

In the current wave of transparency and anti-corruption drive, there is a demand to put the list of chronic defaulters in the public domain, the ministry said adding “this will also put the onus on the taxpayers to liquidate their demand.”

The committee, headed by the director-gGeneral of income tax (administration), will also examine the possibility of engaging outside agencies to locate non-traceable assesses and their undisclosed assets.

It will also look into the modalities for utilisation of the information available with financial intelligence unit-India and the directorate of income tax (systems) for the recovery of outstanding demand in such cases.It has been mandated to propose a reward scheme for informants who will supply information about such tax defaulters and which results into collection of the outstanding demand.

The committee has been asked to submit its report within two months of its constitution. The ministry said there was a huge outstanding demand not recoverable due to reasons like non-traceability of assesses and non-availability of assets for recovery. The government has also instituted a study to quantify unaccounted income and wealth stashed within and outside the country.

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