Plugging Tax Evasion

Chase Dirty Money:
This refers to your edit Chase Dirty Money (ET,24 Feb, 2010). It is obvious that using information technology, tax evasion can be easily plugged.Apart from that Sharing of information among relevant government departments, insistence of PAN numbers for all monetary transactions above a cut off limit and minimising tax component in all major transactions will go a long way in creating an environment to make evasion impossible.

Similarly the sources of black money generation can also be brought under the Income Tax scanner by making use of tools like compulsory incorporation of PAN CARD details in cheques, credit cards, drafts , cash receipt etc. The Income Tax return should also have a provision to clearly indicate the assets and liabilities of citizens.The objective of IT returns should be to minimise black money and maximise revenue collection.

T.V.Gopalakrishnan
(This appeared in ET dated 28/02/10)


T.V.Gopalakrishnan