Mohan Padmanabhan

Kolkata May 9

THE Chief Commissioners of Income-Tax (CCIT), while discussing a Central Action Plan for recovery of income-tax arrears at a recent meeting chaired by the Revenue Secretary, have suggested that there should be one consolidated target for arrear collection rather than different percentages for different types of arrears, as prevalent now.

It is learnt that the CBDT Chairman had clarified that this was done to ensure transparency and equity, as the arrear profiles of different CCIT were different, especially the arrears in the Central charges, where the collectible portion was very small.

It was further suggested, according to sources, that the target for recovery should be fixed as a prescribed percentage of the arrears at the yearend for which target has been fixed, rather than arrears at the beginning of the year.

On the issue of setting up a task force for this purpose, the CCIT are of the view that core committees to monitor recovery are not required, as this was resulting in too much supervision and reporting.

Each CCIT, it was felt, should devise his own strategy and shall be accountable for recovery in his region.

Some of the other suggestions were that a Central Action Plan for arrears should also include targets for launching of prosecution, at least one per range, there should be no budget target for Central charges and the target for recovery from arrears for such charges should be fixed on the basis of the previous year's recovery.

While pointing out that the fortnightly report to be sent to the Board should be done away with, it was also felt that there was no need to have separate nodal officers for recoveries in metro cities.

The CBDT Chairman has suggested that assessments in large cases with big demand should be completed early. Potential cases, it is felt, should be should be selected at the beginning of the year, assessments should be completed and steps taken to recover the tax.

In cases where huge refunds are to be given, the advice is to ensure that no scrutiny assessment is pending in such cases, and the refunds should be adjusted against the demand raised on completion of the scrutiny assessment.

It is further learnt that large taxpayer units are proposed to be set up in the four metro cities, and a committee set up to look into the modalities of these units is expected to submit its report soon.

The CCIT have pointed out that the basis of selection of cases for this purpose should be income tax and not Central excise.

© Copyright 2000 - 2009 The Hindu Business Line