New Delhi: Assuring investors of a stable tax regime, Finance Minister P Chidambaram on Monday said the Income Tax Department would adopt a non-adversarial approach in realising the direct tax target of Rs 5.70 lakh crore for 2012-13.
"We will ensure there is a stable tax regime, there is stable tax laws and everybody (tax department) adopts a non-adversarial approach to tax collection.
"Tax department will be friendly, helpful, interactive. Will help you pay your taxes. Nobody needs to harbour any unnecessary fear of the tax department," Chidambaram told reporters after meeting top officials of the Central Board of Direct Taxes (CBDT) in the national capital.
Referring to the tax collection target of Rs 5.70 lakh crore for the current fiscal, he said the direct tax collections are growing at 10.5 per cent, while the asking rate is 15 per cent to meet the budget target.
"We will be able to achieve the target ... I think the second half of the year, the busy season, we should be able to achieve the target even after factoring the additional refund that has to be given," Chidambaram said.
The Finance Minister said nine out of 10 Indians are tax complaints. "Many professional-run businesses do tax planning. But tax planning does not mean tax non-compliance," he said.
Chidambaram said tax-payers need not harbour fear if their return forms are picked up for scrutiny.
While the corporate tax rate is 30 per cent, effective rate averages 24 per cent due to expenditures, exemptions and carve-outs. However, several sectors are paying only 10-22 per cent tax.
"Therefore, the correct way ... is to look at the sectors which are well below the average, then look at sectors which are closer to the average to see whether the average can be raised. Even if the average is raised from 24 per cent to 26 per cent, we will collect roughly Rs 30,000 crore (more)," Chidambaram said.
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