H C Singh

Income Tax Arrears

In Maharashtra alone income tax arrears to be recovered till date amount to Rs 203 lakh crores from top 100 tax payers. Worst state is that Hasan Ali Khan’s dues make up 35% of the total IT areas i.e Rs 50,345 crores. How could Income Tax authorities sleep over such a large amount of IT arrears without taking strict action against defaulters. Enforcement Directorate came into the picture to investigate the case under Foreign Exchange Management Act. It is stated by a senior IT official that Hassan Ali Khan and his Kolkata based associates whose names figure in the list of those who have parked or deposited large amounts to evade income tax in Swiss Banks which together account for Rs 71,465 crores which is over 33% of the total tax arrears in the country. So for the IT authorities have not gone ahead to recover from Swiss Bank as there has been no official confirmation or communication from Swiss authorities. Thus IT authorities could only attach properties of Hassan and his wife that, too, provisionally.

If the Maharashtra State Govt. had recovered even 1/3rd of IT arrears to date the amount would have become Rs 50,000 crores. Some ofwhich could be easily utilized for relief to farmers in vidharba area who are daily committing suicides which have crossed 650 suicides during the current year. This could have saved many farmers from committing suicide, in desperation, and many thousand others who are in distress, not getting adequate food for their families and some on the verge of dying either through starvation or through diseases or eventually through suicide. This is a sad commentary on Income Tax Deptt of Maharashtra. It could be to an extent the same or similar failures in other metropolitan towns and even in many states.

This means failure of Central Government to make strict laws for income tax recoveries and also punish the defaulters as well as Income Tax Deptt officials for their failure in recovering such huge dues from defaulters. Ultimately the Govt of India is responsible through its Income Tax Deptt. whose inaction or lethargy had cost the country so much. To prevent such failures on part of Income Tax authorities, Central Govt most pass Strict laws holding concerned IT officials responsible for not recovering hundreds of crores of IT arrears.

September 17, 2009 Posted by | Corruption, India, Political Commentary | , , , , , | Leave a comment