The Hindu : Karnataka / Bangalore News : Taxpayers told to declare correct income while filing returns

Online edition of India's National Newspaper
Tuesday, Mar 14, 2006

Karnataka

Karnataka - Bangalore

Taxpayers told to declare correct income while filing returns

Staff Reporter

IT Commissioner hopes that the people will appreciate the importance of voluntary compliance

BANGALORE: The Income Tax Department is gathering information on investment and expenditure of assesses. In this backdrop, Chief Commissioner of Income Tax, Bangalore, Manju Madhavan, has said that it will be in the interest of income tax assesses to declare their correct income and pay taxes accordingly.

Speaking on "Importance of voluntary compliance" at the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Monday, she hoped that the people will appreciate the importance of voluntary compliance.

She said that at present, there is a lot of economic activity going on by way of consumption of goods and this activity can be tracked.

"This information is now being collated and will be cross-verified with the returns filed or to be filed." The department will be scrutinising cases depending on cash transactions, purchase of shares, bonds, registration of properties and the like. "One of the new criteria likely to be introduced in 2006-07 is the low withdrawal shown for household expenses," she said.

She said the issue of less number of persons with income over Rs. 10 lakhs filing returns has figured at interactions with the Central Board of Direct Taxes.

"The economic boom, the growing middleclass, the growth in consumer preferences and consumption patterns and the relatively less number of persons with earnings over Rs. 10 lakhs filing returns do make a contrasting picture," Ms. Madhavan added.

FKCCI President S. Babu welcomed the gathering.

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