CBDT Chairman asks for Special efforts for collection of Regular Assessment Tax

CBDT Chairman asks for Special efforts for collection of Regular Assessment Tax, directs strategies for quarter ended March 2019

CBDT Chairman in a Office Memo addressed to all Pr. Chief Commissioner of Income-tax as aksed them to enhanced  efforts  for maximization  of direct tax  collections with special efforts for collection of Regular Assessment Tax.

As per the letter, the net direct tax collections at the end of December, 2018 are growing at the rate of 13.6% as against the target growth rate of 14.7%. The position of growth in gross collections is marginally better at 14.1% but still below the required rate for achieving the Budget Estimates of Rs. l 1,50,000 crore.

The letter further states that the review of the trends of growth under different Minor Heads reveled  that the growth in collection under Regular Assessment Tax (recovery from arrear and current demand) is extremely low at 1.1% as compared to 15.6% growth during the corresponding period last year.In fact, most of the Regions are showing negative growth under Regular Assessment Tax.

The CBDT Chairman has expressed serious concern over this and stressed that concerted efforts are required to be made to drive up recovery from arrear and current demand. 

In particular, the following strategies have been advised to  be implemented in the quarter ended 31st March, 2019.

(a) Targeted recovery surveys in potential cases where high amount of recovery is likely.

(b) Sale of attached properties in appropriate cases by TROs to recover confirmed demand where normal measures of recovery have not yielded results.

(c) Initiation  of  proceedings  under  section  179 of  the  Act  in  eligible  cases  to  make recoveries of outstanding dues of the companies.

(d) Filing of prosecution under section 276C (2) against persons who are willfully evading payment of outstanding taxes.

(e) Completion  of non-time-barring  assessments  in cases where demand  is likely to  be raised and collected during the current financial year itself.

(f) Verification of deductors where there is non -payment of TDS to the Government account though TDS has been deducted as well as where there is substantially low TDS as compared to last year including launching of prosecution in cases of substantial default.

(g) Verification of payment of advance tax by the seller of properties in cases where TDS under section 194IA has been made by the buyer.

(h) Monitoring of payment of Dividend Distribution Tax by obtaining information from financial websites, SEBL etc.

The Communication further states that depending upon the specific characteristics of the region, other strategies should also be adopted to increase collections and achieve the budget target.