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Indian Government To Pursue Wealthy Non-Salaried Tax Evaders

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

28 July 2004

Speaking at the annual conference of chief commissioners and directors-general of income tax on Monday, India's Finance Minister, P. Chidambaram called on the income tax department to look to wealthy non-salaried tax evaders in order to collect Rs 87,675 million of undisputed direct tax arrears.

Chidambaram urged delegates to examine those making significant "lifestyle" purchases such as luxury cars, airline tickets and expensive jewellery in order to bring more Indian citizens into the tax net.

The Finance Minister also revealed that he will be approaching the chief justice of India and the chief justices of the High Courts in order to ensure that large tax cases are taken up in a timely fashion.

According to a report in the Indian Telegraph this week, the tax department is planning a three stage approach to collecting tax arrears. Initially, they will issue notices to firms and individuals with unpaid tax liabilities, secondly they will contact them by telephone, and if neither of the initial approaches is successful, they will send inspectors to collect the tax debts in person.

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