New Delhi: Tax defaulters will soon get the stick from the Finance Ministry.
Finance Minister P Chidambram is worried because tax collections for November are just not adding up and has indicated that the Ministry will widen its tax net.
The taxmen have been told to come down heavily on defaulters and round 2.7 lakh people who have not filed their returns despite their tax being cut at source, will recieve notices from the Ministry.
The defaulters are mainly state government employees, who have been lax in depositing their taxes and filing the quarterly returns.
Ministry is also sending out letters to various banks to give out information on depositors and credit card holders who haven't disclosed their PAN numbers for big ticket transactions.
As a soft reminder to corporates to pay up their advance taxes, the Income Tax Department has also sent blank tax challans, with just the company name and pan number filled in.
Advance tax collections have suffered losses in the current financial year. The collections, which were steady till December last year, have steadily dipped by Rs 7000 crores.
The ordinance, introduced by Chidambram, also had several far-reaching measures to set right certain anamolies in the Finance Act, 2005 and exempt withdrawals from savings bank account from the new bank cash transaction tax and raising of limit for levying the tax in current and other bank accounts for withdrawals from Rs 10,000 to Rs 25,000 for individuals and Rs 1 lakh for companies.
The ordinance also exempted certain specified incomes of persons from international sporting events conducted in India from income tax.
(with inputs from Sapna Das)
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