The Hindu : National : ``No reason for tax evasion''

Online edition of India's National Newspaper
Friday, Jul 01, 2005

National

National

``No reason for tax evasion''

Special Correspondent

NEW DELHI: : About 130 `help centres' will begin operations from Friday to help small assessees pay their tax. About 80 centres will be for direct taxes while the remaining will be for indirect taxes.

Inaugurating the launch of the centres on Thursday, the Union Finance Minister, P. Chidambaram, said such centres for large taxpayers would be set up in Delhi, Kolkata, Mumbai, Chennai and Bangalore to provide a single-window service to the assesses.

Emphasising that the lowering of tax rates should provide no reason for evasion, while elaborating on the various initiatives taken by his Ministry, Mr. Chidambaram said: "On income-tax front, we have lowered tax rates in 1997 and changed slabs in the last budget. Now, there is no reason for taxpayers to evade tax."

There could be no argument for avoiding income-tax when a Rs. 1-lakh exemption was given with provision for saving an equal amount and a threshold limit of 10 per cent.

As for the indirect taxes, the rates were also reduced, while various other initiatives were underway to help file returns. An online mechanism would be introduced within two months for the 5,500 big assessees who contribute 80 per cent of the excise duties. A similar mechanism for customs duty payers was already there, he said.

There could be some hiccups in the operation of these centres, but a massive media campaign would be launched to make the public aware of the facility. "I will personally visit some of the centres to see their functioning. And we will also get a feedback from the public about their operations," Mr. Chidambaram said.

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