AHMEDABAD, July 8: With Surat and Vadodara being added to the list of cities falling under the proposed one by six scheme for widening of tax base, the number of income tax payers in these two cities along with Ahmedabad is likely to go up by more than two and a half times.The scheme is to be spread over 23 more cities of the country. Chief Commissioner Ahmedabad Commissionerate SNL Aggarwala told The Indian Express that the scheme which is an extension of the earlier two by four scheme is a part of the Finance Bill to be discussed as a part of the budget debate. He said the scheme envisages that any person fulfilling one of the six categories of economic affluence mentioned will have to file a tax return. These six articles include owning a house, a telephone, a car and a trip abroad besides the new inclusions being a credit card and club memberships.
Substantiating his point on the expected increase in number of tax payers, the Chief Commissioner said last year with the introduction of the two by four scheme the number in Ahmedabad alone had gone up by nearly 50,000 adding to the already four lakh payers identified in the city.
However, Agarwala added that with the new scheme coming into existence the scope of tax collection will shrink as a tax payer might fit in more than one categories of economic affluence but will be filing only one return.
He further disclosed that once the Finance Bill becomes an Act the stress in the current financial year will be more on collection of arrears than making assessments. Another area to be given importance is the computerisation at staff level. Agarwala added that the department expects good response to the proposed Samadhan scheme in which a person by fulfilling the conditions laid down will have no fear of being prosecuted, will not have to pay any penalty or interest. Besides his taxable income will also come down. He pointed that the scheme is quite different from the VDIS as here the target group is known to the department.
Talking further about the simplification of the tax returns form, he said the draft of the proposed one page return form has been circulated and the government has been fed with the response. The new simple form under the scheme Saral is likely to come out in about a month. Another scheme being worked out by the department is Samman, he added saying that under it the tax payers will be given certain small benefits related to the day to day life.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.