The government is planning to conduct surveys to increase the revenue as it expects to revenue collection to fall on the back of slowdown in industrial production. The Finance Minister Pranab Mukherjee said 'We are trying to maintain (tax) buoyancy by enhancing/strengthening the tax collecting machinery; by bringing more people through surveys and other information within the tax net...”
According to the Income Tax Act 1961, the word survey refers to collection of information at business premises, assessing expenditure on marriages parties and other celebrations.
Around Rs 2,42,377 crore as on December 31, 2010 has been stuck in income tax cases, however, it is less than 2009 which stood at Rs 2,88,336 crore. Whereas industrial production has been moderating during the current fiscal year, during the April to May 2011, industrial output reduced to 5.7 % which is almost half compare to the same period of last fiscal year.
On the demand for additional supplementary grants of Rs 34,724 crore for current financial year, finance minister said that so far in 2011-12, the revenue collections have been robust with indirect tax collection growing by 30% and direct tax revenues up 26% so far. However, finance minister also raised his concern over the possibility of decline in revenue collection in the current fiscal year due to moderation in industrial production. He said 'If the industrial production goes down then it will have an adverse impact in future', by adding further he said, the government is also trying to resolve tax disputes through a settlement mechanism to unlock the money.
Finance Mukherjee said that unlike last year when the government received a windfall through 3G spectrum auction, 'every time luck may not favour. So, I don't know whether there will be any unexpected source. Keeping that in view I am keeping the fiscal control over the whole thing.'
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