Mumbai, Feb 7: The Central Board of Direct Taxes (CBDT) plans to extend the permanent account number (PAN) facility to 33 cities in the next financial year.According to CBDT chairman Ravi Kant, the facility, currently available to asseesses in the four metropolitan cities, has been favourably received. "Our experiment has been successful in the four metros and we feel the facility can be extended to the remaining cities", he added.
The procurement of PAN, a 10-digit alphanumeric number, has already been made mandatory for all the tax-payers. In Mumbai, the department has provided the PAN cards to around 90 per cent of the tax-payers.
The board also plans to provide incentives to the PAN card holders including priority in airline reservations.
Speaking at a function organised by the All-India Importers & Exporters Association (AIIEA) to felicitate the income-tax officers and professionals who made the VDIS'97 a success, Ravi Kant said tax compliance increases only when the asseessees have faith in hisincome-tax officer.
"VDIS has taught important lessons to the department. We learnt that if we want people to voluntarily come forward and pay tax then it is necessary to simplify tax procedures, have a flat rate of taxation and provide simple forms", he added.The scheme was instrumental in bridging the gap between the assessees and the income-tax officials and this opportunity is being utilised by the board to establish a tax payer friendly administration, he said. Referring to the importance of widening the tax base, he said if people start contributing to the revenue kitty they also get more interested in the running of the government.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
