Modi did not set a deadline to achieve the target.
By Dileep Thekkethil
Prime Minister Narendra Modi is all set to track down people who fake the income statement as he has ordered the tax officials to make surprise visits to houses that reflect the size or grandeur of their property.
A top government official was quoted by the Hindustan Times saying that Modi has also directed the officials to use gentle and friendly means while dealing with tax evaders.
It was during a regular conference of revenue officials that Prime Minister gave the new orders to the officers. Modi also made a proposal to target the taxpayer base to 100 million, which is double the current number for which he has not given a deadline.
For years, governments have failed to collect the proper tax as a few rich tend to under-report their income, which is a major stumble block in expanding state revenues. Another major impediment is the raising amounts of undisclosed incomes or black money, to avoid taxation.
According to Credit Suisse survey, India had 185,000 dollar-millionaires but according to official records there are only 150,000 millionaires above an annual income of Rs. 5 million.
“The Prime Minister asked the officers that in case you know a person who has a big fancy house, but his income is not reflective of the same, do not hesitate to ask him about how he funded this,” revenue secretary Hasmukh Adhia told Hindustan Times, quoting Modi.
The revenue secretary said he would take the suggestion made by Modi with “utmost importance”.
According to sources, in the hour long meeting with the revenue officials Modi did a bit of math to draw the attention of the officers to the point that there are 250 million households in India out of which 150 million are agriculturists who are not obliged to pay tax.
“This still leaves us with 10 crores (100 million) households,” minister of state for finance Jayant Sinha told reporters after the meeting with Modi, who did not set a deadline to achieve the target.
Modi told the officers that they must reduce “trust deficit” with “soft and sober behaviour”.
“If you become taxpayer-friendly, then taxes will automatically come to you,” he told the conference.
Modi also reportedly asked tax officials to focus on five pillars of administration — revenue, accountability, probity, information and digitisation (RAPID) — and move towards “digitisation”.