Corporates got tax sops worth Rs 88,263 cr: CAG
NEW DELHI, APRIL 24:
Tax exemptions cost the Government Rs 1,38,921 crore in revenues in 2010-11, says a CAG report on direct taxes. Of this, the lion's share went to the corporate sector.
In the last five years, the amount of revenue foregone has increased 111.8 per cent, the Comptroller and Auditor General's (CAG) said in its report tabled in the Lok Sabha on Tuesday.
The Government auditor said that corporate sector accounted for 63.5 per cent (Rs 88,263 crore) of the revenue forgone of 2010-11. “The revenue foregone on account of tax exemptions in respect of corporate tax payers increased by 76.3 per cent as compared to 226.6 per cent in respect of non-corporate tax payers during 2006-07 to 2010-11,” it said. In 2006-07, the Government provided tax sops worth Rs 65,587 crore.
REPORTING DISCREPANCY
The CAG report said there were 7.2 lakh working companies in the country, according to the data with the Registrar of Companies, but there were only 3.8 lakh corporate assesses, according to the Income-Tax Department. “The board (Central Board of Direct Taxes) needs to reconcile the discrepancy for accurate assessment of the filing gap,” the report suggested.
The auditor pointed out that the widening of tax base in the country was “very limited.” It observed in the report that the assessee base grew over the last five years from 313 lakh taxpayers in 2006-07 to 335.8 lakh tax payers in 2010-11. “The total direct tax collection has increased by 94.2 per cent during the same period. The increase in tax collection was around 13 times as compared to the increase in taxpayers' base. This indicates a very limited widening of tax base over the years,” the report said.
The CAG also said that voluntary compliance by assessees at the pre-assessment stage accounted for 81.4 per cent of the gross collections in 2010-11. Maharashtra, Karnataka and Delhi contributed 61.6 per cent of the total direct tax collected.
INTEREST PAYMENTS
In another report on Union Government Finances and Accounts, the CAG said a the Central Board of Direct Taxes incurred a total expenditure of Rs 37,365 crore on interest payments over the last five years without obtaining approval of Parliament through necessary appropriations.
Below are my views expressed long ago
Total subsidies , interest relief, and tax relaxation provided per year to high profile corporate comes to the tune of ten lac crores which is at least four times more than the total of subsidies provided to common men in the name of fertiliser subsidy or fuel subsidy.How can one dream of good results for common men when the present government continues such pro rich policies in the name of reformation.
I do not know whether stimulus packages announced by our government after 2008 -09 subprime crisis for Indian corporates was meant for what it has resulted in. I may categorically say that the medicine politicians are prescribing to cure the fiscal problems are less than what they are doing to fuel the sickness, to add fuel to fire of problem.
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When Crisis erupted in American in 2008 our country announced one after other stimulus package to prevent financial crisis eruption in India but failed to do what they desired to do. On the contrary the ill effects of their ill motivated policy is now visible to every conscious Indian .Rich have became richer by so called reformative policies and by the help of stimulus package announced by Indian government after 2008 financial crisis of America. Regulating, monitoring and vigilance agencies along with judiciary became so much corrupt that one after other scam started taking place in all departments and that too in close nexus with politicians and officers. Stories of scams are filled in all newspaper and all TV channels. Still Indian politicians like Dr. Manmohan Singh and Pranab Mukherjee talk of GDP growth and in their usual style leaders are trying to put thick carpet on their evil works and hidden malady. They do not accept that Indian administration is sick and going to be more critical on account of cancer of corruption and nothing else.
All policies announced in the name of reformation are of no significance as they are beneficial only for rich segment of Indian population and this is why after 20 years of reformation era people of India have started debating the merits and demerits of so called reformation in the perspective of India
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