Srinagar, June 9: In what points to a significant improvement in tax compliance in the state, the J&K Circle of Income Tax has over-achieved its targets for 2009-10.
 In an exclusive chat with Greater Kashmir, Chief Commissioner, Income Tax, Amritsar, G R Sufi, said with tax compliance improving in the state, the department had surpassed its Rs 1504 crore target for 2009-10.
 Emboldened by the remarkable results, the department is eying a Rs 1700 crore tax yield this year, even as the department has yet to be allotted new targets for this year.
 “The allotment of target is being done the Central Board of Direct Taxes. An All India Chief Commissioners’ Conference in Delhi will be held this month and the targets will be communicated to us shortly after that meeting,” Sufi said.
 Sufi said the department had launched a vigorous campaign for making taxpayers aware of their obligation under the Income Tax Act.  “There are certain people who earn taxable income but because of their unawareness of various tax laws they face difficulties in paying the tax,” he said.
 “We have met number of representatives of different traders’ associations explaining them that the department was open to educate and advice them on tax laws. We have told them that we are for their help and to address their problems,” Sufi said, adding that the taxpayers could also utilize services of “our officers in this regard. Our department is always ready to advice people on tax laws.”
 “For the convenience of the people we have opened an office in Islamabad last year. We are soon planning to have an office in Sopore or Varmul,” he said.
 On people’s apprehensions about filing the tax returns, Sufi said: “The anxiety among the people that once they file a tax return they are subjected to lots of enquiries or investigations is absolutely misplaced.”
 “We emphasize on voluntary compliance. The enquiry or investigation ratio after filing a return is only 2 per cent. Our officers have strictly been instructed to accept the returns without any enquiry. It is just in 2 per cent cases where they need to inquire and even in that 2 per cent cases the assessing officer has no discretion to select the person,” he said, adding that the cases were being picked up by Computer Audit System.
 “The criterion is determined at all India level and no pick and choose is resorted to,” he said, adding that if people smell any hanky-panky, “they can raise the issue with the additional commissioner IT.
 Sufi said people should voluntarily come forward to file their tax returns. “Even if they have not filed their returns for past several years, it is time they came and filed the returns. I assure them they won’t face any hassle,” he added.
 He said the taxpayers should ensure payment of their taxes and respect notices in case they failed to pay the tax returns.
 On the complaints of some people alleging that the department issued notices to harass common taxpayers, he said: “If people are not filing their returns, the officers of the department are well within their powers to issue notices to them. Income tax law says that any person who has taxable income has to file returns voluntarily. If he/she fails to do so then law will take its own course. The notices will be served and this should not be construed as any harassment.”
 “There is a misconception in certain sections in the state that it is the centre which is exclusively benefitted by the taxes collected from the state. It is totally a wrong notion. No doubt the income tax is collected by the centre from the states, but there is a set procedure under which the taxes are devolved back to the states. And, let me tell you that J&K gets more than what it pays,” he said.
 Sufi said: “Time is not far away when every business establishment will depend on its income tax status to do business. We are trying to educate people so that they will be saved from serious problems that may be in store for those who skip taxes,” he added.
 According to Sufi PAN Card has become mandatory for every person who has taxable income. “It is a voluntary obligation for tax payers. Earlier we used to issue PAN cards ourselves but since last few years we have outsourced it. We have given it to UTI and they have five branches in Srinagar. Whosoever wants to obtain it should go there and get it within 15 days,” he said.
 He said the people initially used to face difficulties in getting return vouchers or return form but now they can easily download it from the NET. “Sometimes we have a problem where we don’t have those forms available with us because it is a centralized stationery and comes from there only, it cannot be printed everywhere.  But now these forms are available on NET and people can download it directly,” he said.

Lastupdate on : Wed, 9 Jun 2010 21:30:00 Makkah time
Lastupdate on : Wed, 9 Jun 2010 18:30:00 GMT
Lastupdate on : Thu, 10 Jun 2010 00:00:00 IST