Arun Jaitley said, 'People should voluntarily made disclosures and come within the tax net'
Economy news : Finance Minister
Arun Jaitley Monday said example needs to be set to create a deterrent ag the inst use of anonymous people to hide ill-gotten wealth, amid some politicians and their family members coming under the scanner for alleged benami deals.
Referring to opposition of
PAN-Aadhaar linkage, he said it is an "effective anti-evasion measure" and will get rid of multiple PAN cards and mismatch in income and expenditure, but it is being opposed "in the name of privacy".
He also said that the government is using technology to reduce the interface between a tax department official and the taxpayer to not just cut compliance cost but also corruption and harassment.
Addressing tax officers at the Income Tax Day event here, he said that tax rates have to become more reasonable but for that to happen, the tax base has to be widened by including more people in the net.
"These days we are finding political leaders also resorted to (benami dealings)," he said, without naming anyone. "Therefore (we are) unearthing them."
He said the government has taken steps under the stringent Benami Transactions (Prohibition) Amendment Act, 2016 that provides for confiscating properties of those who use name of other people to convert unaccounted wealth into white.
"Unless we can set some examples, we set down right deterrent against such kind of practices" can this practice of benami properties end, he said.
Raids were conducted in recent weeks at various places including Delhi and Haryana over alleged Rs 1,000 crore benami land deals involving the RJD chief and his family.
Jaitley said that the situation where the compliant tax payer has to actually pay twice over -- once his own share of taxes and the second time a higher share to compensate the non-compliant, cannot be allowed.
"Our vision is: we will use technology, we will ensure that our procedure is simple, we will ensure that there is almost negligent interface between (tax) department and assessee, (and) we would like our rates to become even more reasonable, but to enable us to that we need to expand our base," he said.
People should voluntarily made disclosures and come within the tax net, he said.
India, on the one hand, boasts of being the fastest growing major economy in the world but on the other hand lacks in some of the essential expenditure, he said.
"A more empowered country will need to be a country which is empowered by honest and compliant taxpayers. The faster we can do it, the greater it will be in the larger interest of the country," he said.
