The Central Board of Direct Taxes (CBDT) has released its action plan for FY20. The tax authority has focused on getting in more tax filers, faster resolution of litigations, and addressing PAN errors.
The CBDT added 1.10 crore new tax filers in the last fiscal year. This year, the authority is aiming at increasing the number by 18% by getting in 1.30 crore new tax filers. The CBDT believes that there is a scope for broadening the direct tax base in the country.
The CBDT has recognised the steps to find out the potential taxpayers with the help of technologies such as data analytics and data mining managed by the System Directorate, Directorate of I&CI, TDS/TCS charges and Investigation wing.
The CBDT thinks that the effective utilisation of the data will help in identifying the potential taxpayers. Furthermore, the data from the local intelligence, disseminated data and inputs from trade bodies, and professional organisations will help in identifying tax evaders.
The CBDT has come across instances where high-value transaction TDS deductors are executing transactions that throw up ‘Invalid PAN’, ‘PAN error’, and ‘PAN not available’ errors. The tax body has asked these instances to be highlighted at the earliest.
The CBDT has also intended to come down heavily on those paying lesser TDS on immovable properties. The list of defaulters would be generated and assessing officers (AO) will be directed to take actions.
The direct tax body has observed that buyers of the property are deducting TDS at the rate of 1% on purchasing immovable properties from the non-resident Indians (NRIs). The current laws require them to deduct TDS at the rate of 20%. These cases would be taken up on priority.
The CBDT is not happy with the slow pace of appeal disposals, and there is a considerable number of pending appeals. As per the CBDT’s data, there are 22,156 pending cases for over five years and 66,400 cases pending for more than three years.
The CBDT has not made any changes in the tax collection target. It is currently fixed at 13.8 lakh crore for FY20.