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This is an archive article published on December 24, 1999

Infotech to help detect evaders, says I-T chief

MUMBAI, DECEMBER 23: Information Technology will play a vital role in the functioning of the Income Tax department especially in the areas...

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MUMBAI, DECEMBER 23: Information Technology will play a vital role in the functioning of the Income Tax department especially in the areas of tax evasion and will help government generate revenue, said Chief Commissioner, Income Tax, B Mishra.

Addressing a meet-the-press programme organised by the Press Club, Mishra said that a plan for extensive computerised audit has been chalked out for the next millennium. He said, tax evasion is not a product of income tax laws but a product of quota raj, high rates, controls and non-liberalisation.

He said that legal and administrative changes will also help to change the scenario apart from the use of information technology. He said that a stable tax rate, quick mechanisation and a policy of trust between the department and the assessees will help in a big way.

According to Chief Commissioner I-T II K V M Pai, tax declaration is not to the real extent as only one-tenth of the real income is declared by the assessees.

Citing examples of United States, UnitedKingdom and other developed nations where tax evasion is dealt with seriously, Pai pointed out that in India, among the over 900 million population only 18 million are tax payers. In developed countries it is not so, he said, citing the example of United States where 170 million are tax payers out of total 250 million population. In UK, 35 million out of total 55 million are tax-payers, he added.

 

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