Boosting revenues: Income Tax department to widen net in tier II cities

New Delhi: The Income Tax department has decided to use technical intelligence and pay special focus on tier-II cities like Jaipur, Surat and Lucknow among others, to bring more and more people living in these “progressive” cities under the tax net. The new plan is expected to be set in action as early as next month and is part of the governments’ recent directive to the taxman and its apex policy making body, Central Board of Direct Taxes (CBDT) to bring in at least 25 lakh new assesses under the tax ambit every month.

The department, senior officials privy to the development said, “will unleash the power of its smart-technical intelligence and business computation databases to tap on these potential entities and ensure that the overall tax regime remains non-adversarial and non-intrusive while undertaking this task”. These strategies to “significantly expand the tax base” will be discussed threadbare as a key point by the top brass of the Income Tax department and CBDT during their two-day annual conference begining here from Monday.

Finance minister Arun Jaitley will inaugurate the meeting held traditionally over the years.“A trend analysis done by CBDT and other agencies point towards the fact that the tier-II cities have a very large untapped potential in terms of getting more individuals and entities to come under the tax paying bracket,” the officials said. These cities are seen as progressive on the revenue front.