Business

Govt Mops Up Rs 26,500 Crore From People For Not Paying Tax, Arun Jaitley

AASTHA SINGAL | 0
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| February 10 , 2018 , 12:25 IST

The Indian government has been boasting about the recent economic reforms which helped the nation in collecting more taxes and fighting the evil of black money to a greater extent. In a recent report, it was unveiled that the implementation of GST has reportedly helped the government in mopping up close to Rs 26,500 crore from people who didn't pay taxes on their transactions.

Government's ever-efficient non-filer monitoring system has forced around Rs 1.7 crore extra returns from those who refrained from paying taxes on their high-value transactions, helping the authorities in collecting a huge amount from them till December. Finance Minister Arun Jaitley confirmed the figures to Parliament through a written reply on Friday.

Jaitley conveyed that the scope of Tax Deducted at Source (TDS) and tax collected at source (TCS) was expanded in the past years. FM noted that the tax department has been identifying non-filers by tracking in-house information and tallying it with data on high-value transactions received from external agencies along with TDS and TCS.

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"The mechanism for collection and verification of financial information has been broadened to include data in respect of various types of high-value transactions from banks and financial institutions and high-value expenditure from commercial establishments in the form of Statement of Financial Transaction (SFT)," the FM said.

Government's tracking system identified around 35 lakh non-filers with tax liability this year, which is lesser than last year's number of 67 lakh. Government's motive of deepening the Income Tax System is evidently working as many people with large cash deposits have notably filed returns. Authorities have the target of 1.25 crore new return filers.

Jaitley conveyed that the government was using rule-based algorithms for identifying the non-filers and monitoring the cases into various categories. Text messages and emails were also sent to the targeted groups to file returns and a compliance management cell had been set up to track responses followed by notices.