Tax Hotline
July 26, 2001
Indian Income Tax Authorities Consider Hike in Audit Ratios of Tax Returns
In order to bridge the government’s fiscal deficit of Rs.1,150 billion (approximately USD 25 billion) and to ensure effective tax compliance by individuals and corporate entities, the Indian Income tax authorities are considering an increase in the audit ratio from 1% to 5% of all small tax returns showing an income of upto half a million rupees (approximately USD 10,870) and to 100% audit of all large tax returns showing an income of over half of a million rupees.
At a recent meeting, the Chief Commissioner of Income-Tax of Mumbai stated that there is a vast scope for improvement in tax compliance in Mumbai, considering the fact that the city accounts for 40% of the tax collection in the country.
Source: Financial Express, July 26, 2001
Disclaimer
The contents of this hotline should
not be construed as legal opinion. View detailed disclaimer.
This hotline does not constitute a
legal opinion and may contain information generated
using various artificial intelligence (AI) tools or
assistants, including but not limited to our in-house
tool,
NaiDA. We strive to ensure the highest quality and
accuracy of our content and services. Nishith Desai
Associates is committed to the responsible use of AI
tools, maintaining client confidentiality, and adhering
to strict data protection policies to safeguard your
information.
This hotline provides general information
existing at the time of preparation. The Hotline is
intended as a news update and Nishith Desai Associates
neither assumes nor accepts any responsibility for any
loss arising to any person acting or refraining from
acting as a result of any material contained in this
Hotline. It is recommended that professional advice
be taken based on the specific facts and circumstances.
This hotline does not substitute the need to refer to
the original pronouncements.
This is not a spam email. You have
received this email because you have either requested
for it or someone must have suggested your name. Since
India has no anti-spamming law, we refer to the US directive,
which states that a email cannot be considered spam
if it contains the sender's contact information, which
this email does. In case this email doesn't concern
you, please
unsubscribe from mailing list.
|