Tax dept to send notices to 35,000 assesses next week: FM

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Finance minister P. Chidambaram today said the revenue department will send tax notices to 35,000 assesses next week, beefing up efforts to reach the collection target for the fiscal.

“We have issued notices to 35,000 people saying that on the basis of information we have, you should have filed your return. Another 35,000 notices are going next week,” he said in a TV interview.

He said the tax department has information about people’s expenditure patterns and their financial transactions. “You cannot hide any longer ... Therefore, today the best policy is to admit your income and pay tax... The tax base will rise this and we will find more people admitting to more income,” he said.

The government proposes to collect over Rs 5.65 lakh crore from tax revenues as per revised estimates, marginally lower than Rs 5.70 lakh crore budgeted for the current fiscal. The gross collection of direct taxes stood at over Rs 4.55 lakh crore during the April-January period of current fiscal.

On taxing the super-rich, Chidambaram said, “It was indeed shocking that there are only 42,800 persons in this country, that includes individuals, HUF, firms, associations of persons, admitting to a taxable income of Rs one crore and above”. Chidambaram in Budget has proposed a 10 per cent surcharge on people or entities with taxable income of over Rs one crore.

“I am confident that if more people heed my advice (and disclose true income), there will be more who join the ranks of people who have high income. There is no shame in having a high income,” he said.