Income Tax

CBDT debunks suggestions by IRS officers on tackling COVID-19 situation

CBDT debunks suggestions by IRS officers on tackling COVID-19 situation, calls it a violation of Conduct Rules and initiates inquiry

A report/Paper was circulating in the social media in the name of FORCE (Fiscal Options and Response to COVID-19) Epidemic). Purportedly it has been issued by the Indian Revenue Service Association to Chairman and other members of the CBDT, According to the said report/paper, it was prepared in response to CBDT seeking feedback from field formations on the ideas for revival of various sectors of the economy.

One of the suggestions given is taxing the wealthy (super rich) as a short term measure (for 3-6 months) on the premise that wealthy can fall back upon their wealth to cope with the temporary shock. Two alternatives were suggested for a limited, fixed period of time. First by raising highest slab rate to 40% for total income levels above Rs. 1 cr or  secondly, re-introduction of the wealth tax for those with net wealth of Rs. 5 crores or more.

CBDT debunks suggestions by IRS officers on tackling COVID-19 situation

However, CBDT in a press release issued today has clearly stated though there is some report circulating on social media regarding suggestions by a few IRS officers on tackling COVID-19 situation, but the Board had never asked IRS Association or these officers to prepare such a report.  No permission was sought by the officers before going public with their personal views and suggestions on official matters, which is a violation of extant Conduct Rules. Necessary inquiry is being initiated in this matter.

The impugned report/paper does not reflect the official views of CBDT/Ministry of Finance in any manner, added CBDT.

But the question remains if at these unprecedented time of the global epidemic, should not the CBDT should welcome the efforts/suggestions of its own officers? 

Share

Recent Posts

  • Income Tax

Non-deduction of TDS does not make transaction as unexplained in the hands of deductee – ITAT

Mere non-deduction of TDS by the deductor on a transaction does not change the character of the transaction to make…

2 days ago
  • ICAI

Last date to submit MEF 2026-27 extended to 09.09.2026

ICAI has extended the last date to online submit Multipurpose Empanelment Form (MEF)- 2026-27 from 29th August 2026 to 9th…

2 days ago
  • Income Tax

Validity of demand u/s 156 for default u/s 115-O, if assessment order u/s 143(3) has Nil demand

Can a demand notice be issued u/s 156 for non-payment of Dividend tax u/s 115-O, when as per assessment order…

4 days ago
  • Income Tax

Issue already examined and adjudicated by CIT(Appeals), can’t be reopened on same set of facts

The issue already examined and adjudicated by the quasi-judicial authority, i.e., CIT(Appeals), cannot be reopened on the same set of…

5 days ago
  • Income Tax

TDS can’t be denied for non deposit of tax deducted by the deductor – High Court

One TDS is deducted, credit has to follow, failure of deductor to deposit the amount to the credit of the…

6 days ago
  • Income Tax

Cash withdrawal from bank can’t be taxed u/s 69C as unexplained expenditure – ITAT

Merely because assessee did not explain purpose of cash withdrawal from bank, it can not be taxed u/s 69C as…

6 days ago