Tax Evasion

It is reported in prominent newspaper today that tax dues from tax evaders has been increasing year after year and due to some reason or the other has mounted to Rs.198508 crores, say two lac crores rupees as on 30.09.2009. Out of this Rs.133232 crores pertain to corporate sector and Rs.65274 crores from individuals. Department of revenue, the Central Board of Direct Taxes has proposed punishment of rigorous imprisonment from three to seven years for such tax evaders, who conceal their income, who do not file income tax returns, who violates anti money laundering act, or who do not deduct TDS or do not deposit tax deducted at source in time..

This is indeed a very good proposal .I however feel that CTBT should start this holy task by launching searching and investigating process in respect of all officers and babus working in Income tax department and various Ministries of Central government. Charity and good work should begin from home. In the second round big fishes involving tax evasion of rupees ten lacs and more may be trapped, then politicians having houses, apartments, colleges, factories worth more than a crore rupee may be caught and so on.

When top level ministers, IT officers , IT commissioners, CBI personnels,vigilance officers and officers involved in scrutiny of files, searching, assessing and investigating processes are honest , there is no doubt that the same culture will percolate down the level and this message will spread like epidemic in entire country and people of India will never dare opt for tax evasion. It is a bitter truth and undeniable fact that all types of tax evasions are taught by none other than IT babus and officers either directly or middlemen called as IT consultants. There is clear nexus between tax assessing authorities and businessmen and all tax files involving big individuals and corporate. As soon as Income tax payer agrees to quantum of bribe or commission set by IT officers are given in an envelope, file gets clearance from tax officers. This corrupt practice causes loss many times more than existing tax dues revealed herein above to government.

It is unfortunate that honest tax payers in India are never awarded, respected and given preferred treatment, but more often than not harassed and unnecessarily tortured by corrupt IT babus and corrupt officers of Income tax departments because such honest tax payers do not easily agree to give bribe to the department .It is also true that in our country even IT officers do not get promotions and good posting as long as he or she do not fill the pocket of Ministers and top officials of Ministry of concerned department. Such practice is all offices of government, all banks and all departments where government is having control. Merit is seldom respected, but corrupt officers are more often than not awarded. When the Ganga flowing from top is poisoned and polluted one cannot dream of pure water at ground level. .

This is why I have to suggest to Government and CTBT to launch attack first on those officers who are originators, perpetuators and irrigators of corruption and immediately stop financial terrorism let loose by tax authorities .If we start giving respect to honest tax payers and punishing corrupt government officers honestly, sincerely, quickly and without any based attitude there will be great improvement in the prevailing culture and people of prefer paying tax than opting for tax evasion. There are enough laws in existing law books to penalize the guilty if there is will to do so. There is no need to frame tougher rule in this regard. India needs strong will of execution of rules truly and in good spirit

India should learn to award honest officers and stop giving preference to officers who flatter and who earn through unfair means and give share to seniors. Public opinion should be sought to assess honesty and integrity of an officers. Formal certificate of honesty and integrity as prevalent in the system is nothing but a formality. Truth and reality of Indian system is known to all Indians. As such proposed rigorous imprisonment should commence from corrupt IT officials and corrupt ministers sitting at the top post and who are root cause of all evils. Tax payers deserve praise, respect and honour because they are backbone of Indian economy.

Danendra Jain
Ganaraj Chumuhani Agartala 799001
05.04.2010