The Revenue Secretary has mentioned these efforts of the government to increase the tax.
The government is constantly working to increase the tax base. According to Revenue Secretary Tarun Bajaj, as per the return data, about 75 per cent of the individuals have an income of less than Rs 5 lakh. In a conversation with Indian Express and Aanchal Patrika, he discussed the government’s efforts to increase the tax base and regarding crypto, he said that this legal issue and a bill should be brought about it. However, he told the investors that they must pay tax on their earnings. Bajaj has estimated that the income from tax can increase by 14 percent.
Tax revenue expected to increase by 14%
According to Revenue Secretary Bajaj, if the excise duty figures are not included in the next financial year, then there can be an increase of 14 percent in tax revenue, which can be said to be better. According to Bajaj, there may be an increase in the base this year as there is a pick-up in growth. The revenue secretary says that there is no point in including excise duty in tax revenue as it has nothing to do with GDP.
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Cryptocurrencies like BitCoin need regulation
Concerns have been raised about small investors investing in cryptocurrencies as there is no regulation regarding it. In such a situation, Bajaj said that for this, the government should come up with a bill soon and after such a bill comes, the interest of investors will be protected and crypto can be regulated. He said that the role of the Revenue Department in this matter is limited and those who make profits from crypto should pay tax.
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Old tax system attractive for low income earners
Two years ago in 2020, the new tax system was introduced and taxpayers were given the option to choose between the old and the new tax system. Bajaj says that corporates have come more towards the new tax system than individuals. How much individuals have come towards the new tax system, the analysis has not been done yet, but Bajaj believes that those who have less income may not have come towards the new tax system. According to Bajaj, those who earn more and do not take any exemptions, they will move towards the new tax system. He told that in the returns of 2019-20, 75 percent were earning less than 5 lakhs and 92 percent were earning less than 10 lakhs.
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In this way, preparing to increase the tax base
Bajaj said that 7 crore people file returns while 11 crore people pay tax i.e. 4 crore people do not file returns because their TDS may have been deducted. In such a situation, a rule was brought that if TDS is deducted more than Rs 50 thousand and the return is not filed, then it will be necessary to file the return within two years. TDS liability will double if the return is not filed within two years. Now this time period has been reduced from two years to one year. Apart from this, two years time has been given to rectify any mistake in the return.
(Article: Indian Express)
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