Experts comment that middle income group and salaried employee eave tax due to complex paperwork.
Too much paper work and complex procedure is considered the key reason why people are prone to tax evasion, say the experts of India. Keeping this in mind the government may do away with the process of investment proof submission. This declaration has to be made in Thursday’s Union Budget.
This Union Budget is the last complete budget presentation by the NDA government before the general elections of 2019. A senior officer from the Income Tax department stated that they have received multiple requests through years to reduce the paperwork involved in the tax proof submission process. He also said that there have been lot of discussions regarding the relevance of hardcopy submission of proofs when information about each tax payer is available online and can be availed with just a click of the mouse.
To make online accessibility of tax payer information easy and quick government has encouraged in linking Aadhaar with bank accounts, with all investment schemes like insurance policies; people have also been asked to link the Aadhaar with Pan Number.
The official also informed this is just a suggestion from the Income Tax department and the final decision lies in the hand of the Finance Minister, Arun Jaitley whether this step can be initiated from the present year itself or from the next year.
After the recent amendments in the income tax rules and regulations, the income tax department has also been permitted by the government to use databases from banks, municipal corporations and insurance companies to acquire knowledge about the tax payers and the defaulters.
As per the official data from the department just 1.7% of the total tax payers in the country paid tax in the assessment year 2015–2016.