New Delhi: A committee on tax reforms on Tuesday recommended levy of banking transaction tax on withdrawal of cash beyond a specified limit in a day to check black money and bring under tax net rich farmers, whose annual income is over and above threshold income of Rs 50 lakh.
In an attempt to check flow of black money in real estate, the committee — set up by the erstwhile UPA government — suggested local governments to reduce the difference between the circle rate or government rate, and the actual market value of properties.
While rejecting suggestions for tax amnesty scheme, the panel said that the number of income tax-payers should be doubled from three crore to six crore in three years and the coverage of TDS should be expanded to cover more and more transactions.
The report, which was third in the series, said that currently there is a perceptible gap between the potential and the existing number of taxpayers. The focus, the panel claimed, has to be on bringing in new taxpayers and targeting sectors that remain under-taxed or untaxed. “It has given rise to a large cash economy which comprises mainly the unorganised sector that tends to include small businesses and high net worth individuals,” said the report.
