{"id":23365,"date":"2021-08-31T15:13:55","date_gmt":"2021-08-31T09:43:55","guid":{"rendered":"https:\/\/plyinsight.com\/?p=23365"},"modified":"2021-09-24T17:23:14","modified_gmt":"2021-09-24T11:53:14","slug":"efficient-income-tax-department","status":"publish","type":"post","link":"https:\/\/plyinsight.com\/hi\/efficient-income-tax-department\/","title":{"rendered":"Efficient Income tax department"},"content":{"rendered":"
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The government has introduced technology in a big way to reduce the extent of physical interface with taxpayers. Faceless scrutiny and assessments can be completed much faster, with fewer people with the use of technology. The preliminary processing of tax returns is already undertaken with the help of technology. There is now greater scope of using more technology to reduce the human interface even further. Globally, there has been a trend of reducing the number of officiates employed by the direct taxes department. So, why should India be an exception?<\/strong><\/p>\n

The data for 2018-19 shows that’s much as 37 per cent of the total direct tax receipts came to the government through tax deduction at source. Another 40 per cent came by way of advance tax payments from corporate and individual taxpayers. This has been the trend for the last several years.<\/p>\n

It’s true that in the last two decades, the income tax department has done quite well in reducing its cost of collecting direct taxes. Its expenditure on collection has declined from 1.36 per cent of the total direct tax receipts in 2000-01 to 0.62 per cent in 2018-19. But this decrease has taken place against the backdrop of a huge rise in direct tax collections in this period, even as technology induction has helped in keeping the cost of collections under check. Perhaps, there is even greater scope of reducing the expenditure on collecting direct taxes, particularly when almost 77 p0er cent of the taxes are collected through deductions at source and voluntary payments.<\/p>\n

So, the finance ministry may also debate how it could streamline the functioning of the top team in the income tax department, how more efficiently these positions could be repurposed, and how effectively the hugely increased manpower strength in the income-tax department could be used or, if found surplus, redeployed.<\/p>\n

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