'FY'13 to be turnaround year for economy'

Pranab Mukherjee asks tax officials to work "relentlessly" to improve tax collection

PTI | June 11, 2012



Dismissing concerns that India's growth rate may drop below 6.5 per cent, finance minister Pranab Mukherjee on Monday said 2012-13 would be the turnaround year for the economy.

Addressing a conference of top officials of the income tax department, he said steps are being taken to put India back on path of high economic growth.

"We are taking all necessary steps to ensure that we come back to the path of the targeted GDP growth. Of course it will take some time.But from this year we expect to make a turn around," Mukherjee said.

In the Budget 2012-13, the government had pegged 2012-13 GDP growth at 7.6 per cent (plus, minus 0.25 per cent).

Following a "disappointing" economic growth of nine-year low of 6.5 per cent in 2011-12, there have been concerns that India's expansion rate this fiscal may slip further.

Mukherjee said that after the 2008 economic crisis, the GDP growth slipped to 6.7 per cent in 2008-09, but bounced back to 8.4 per cent in the following two financial years.

Highlighting the positives in the economy, Mukherjee said interest rate cycle has been reversed and there is growth in mining sector, turnaround in investment growth rate and there are predictions of normal monsoon, besides decline in crude oil prices.

"All these factors should help in recovery of domestic growth momentum," he added.

On direct tax collection target of Rs 5.70 lakh crore for the current fiscal, he said it was achievable.

"I do feel this target is moderate and can be achieved," he said while asking the tax officials to work "relentlessly" to improve tax collection.

In 2011-12, the direct collection at 4.95 lakh crore was marginally down from the revised target of 5.05 lakh crore.

Amid undeclared assets held by Indians abroad being a matter of "intense debate recently", Mukherjee said that to encourage and facilitate real time exchange of information on cross-border transactions with other jurisdictions, India has set up 8 more Income Tax Overseas Units (ITOUs).

After a comprehensive review of the existing network, steps are being taken to augment the reach of the ITOUs in more jurisdictions, he added.

Enlarged network of ITOUs, with an enabling legislative framework in the form of Double Taxation Avoidance Agreement (DTAA) and Tax Information Exchange Agreement (TIEAS), will help in receiving valuable information in future, he said.

On promoting voluntary compliance of tax laws and role of children, Mukherjee said there was a need to educate them on the importance of taxes for the nation building process.

He said the I-T Department has partnered with NCERT to introduce information in this regard in school textbooks.

He, however, expressed concern over rising litigation with tax payers and amount locked up in appeals before CIT (A), ITAT and different courts.

A whopping over Rs 4.36 lakh crore was locked in about 2.59 lakh cases as on December 31, 2011.

The main reason for pendency of cases before CIT (A), he said, appears to be slower disposal rate vis-a-vis the pace of cases being filed. On an average, it takes about one and half years to dispose of a case.

"The Department needs to ensure that after proposed cadre restructuring sufficient manpower is deployed to reduce the time taken for disposal of appeals and that it is not more than six months" he added.

Mukherjee said he has been directing the I-T Department to reduce all avoidable litigation with the taxpayers as well as with employees.

"I have also asked CBDT (Central Board of Direct Taxes)to ensure that no charge sheets are filed on the last date of retirement," Mukherjee said.

Comments

 

Other News

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter