Acclaimed as an intellectual wizard of the Income Tax Department, Amar Mishra had joined the IRS in 1959 and then ascended the ladder by becoming Deputy Commissioner, Commissioner, Member of the Income Tax Board and Chairman of the Income Tax Settlement Commission. He was the first Odia officer who proved his mettle by achieving this numero-uno status in the department. He also headed many missions in the comity of other nations. Grandson-in-law of Pt Nilakantha Das, Mishra stays one half of the year with his only daughter Subarna and son-in-law Ashok Mishra in Scotland and the other half in his home town Bhubaneswar and Angul. In an interview to The Pioneer, he spoke to Sugyan Choudhury from his Suryanagar residence in Bhubaneswar.
The labyrinthine laws of the Income Tax Department have become so complicated that it becomes difficult for the common man to comprehend them. What’s your opinionIJ
This is like this. Tax is a levy collected. It is not a voluntary contribution. No one wants to part with his or her income voluntarily. Everybody wants to keep as much as income with him or her without parting it. This is human psychology. Therefore, there is an element of coercion in the law for which laws are bound to be complicated. It cannot be that simple for everybody to understand it fully. World over attempts have been made to simplify the laws. That has happened in India too. When you are talking of common people, they are the common taxpayers or individual tax-payers. There are various categories of income sources for taxpayers. There are individual taxes, corporate taxes, trusts, association of persons, etc. You cannot have a simple law for all these categories of people in a simple way comprising incomes from all sources which will be easily understandable. But today, the IT Department has made the job easier. You need not run to an office for filing returns. You can do it electronically which is connected to our centrally located station at Bengaluru. You can just sit at a computer and fill in the form, if you are just a salary holder. If you are having some household property, you can fill in another form and it is not that difficult to fill it up. Moreover, there are sites which will guide you regarding the amount of tax payable for which you need not have others’ help. The computers are ready to help you. So, present-day taxpayer enjoys more freedom and simplification of laws and their procedures than what it was 20-30 years back. There are still conscious efforts on the part of the IT Department to make the laws still simpler till it reaches one and all in clear, unambiguous terms.
Do you think that the present IT laws are adequate enough to bring back black money stashed outside the country or to prevent circulation of black money by underworld dons and by business housesIJ
The question arises how and when black money operates in our country. If all transactions take place in terms of cash and not of cheques or credit cards, it becomes very difficult to know what transpires between the buyer and the seller. The system fails to generate information in this regard, unless the money receipt manifests itself in terms of building, jewellery, etc., etc. which are cut hold up during search operations. Cash transactions provide the escape route which should be prevented. About black money, I am sure that the laws of the IT Department are adequate to deal with all kinds of black money. laws are enough, but the will to execute it is very important and that matters very much. Ironically, foreign countries have laws not to part with their information from their banks unless they have their agreement with our country for sharing of information. That is why the present Government and the IT Department are entering into agreement for sharing of information and, accordingly, steps are being contemplated to bring back black money. The Finance Minister has disclosed about such stringent laws which are so heavy in levying punishment and while dealing with prosecution that a taxpayer would think thrice before depositing money outside the country or while trying to evade IT rules.
There has been a reduction in corporate sector taxes from 30% to 25%. This has resulted in loss of a large chunk of revenue to the national exchequer. How then has it benefited the nation and the corporate worldIJ
Yes, there has been a reduction in the corporate taxes. let me give you a notional example. Supposing a loss of 1,000 crore occurs from this sector. This money remains with the corporate world. With this money as the base, they can have another 2,000 crore as loans and set up a factory which will generate income, further employment, and that would go on strengthening the economy. That is the idea to make India more vibrant. How can the economy become more advanced unless we generate more income, more employmentIJ
In our country there is no system of joint filing of IT returns by both husband and wife; as a result, under the exemption slab each of them avails the exemption bringing loss to the system.
Barring the exceptions of the US and Malaysia, no other country probably has this system of joint filing of IT return. Considering the dignity to women, we should not have such a system. Both of them are staying together. That does not necessarily mean that they are having their incomes from the same source and that they should file tax returns jointly. In my opinion, the system prevailing in our country for individual assessment is fair and just.
The IT Department had announced that if any businessman discloses about his business and deposits 8% of his income, there would be no further assessment. But it is alleged that after doing so, they are being harassed by the department.
Such information has not reached me as I am no longer in the job, but if that has happened, there is a hierchical system in our department. They can approach Deputy Commissioner, Additional Commissioner, Commissioner, Principal Commissioner for redressal of their grievances. But sometimes, it so happens that while you deposit 8% of your income, the department obtains further positive information regarding your concealing regarding other sources of income, for which they are being called for.
The IT mandarins, it is alleged, prove themselves as imbeciles while dealing with powerful politicians who are having black money with them. What’s your opinion regarding this type of observationIJ
IT officers are quite oblivious of such discriminations, whether the tax evader is a common man or a powerful politician. If the department has positive information, it does not retreat; rather it rises to the occasion to take action against the offender despite the position he enjoys or enjoyed in his life. I can of course tell you about a situation which I personally faced in my career. I was then the Director General of Investigations stationed at New Delhi. A search operation in New Delhi South Extension was going on. Suddenly, I got a call from the PMO. The Minister of State spoke to me. I should not name him since he is alive although the PM is dead by now. The voice said, “Am I speaking to the DG, InvestigationIJ”
“Yes,” I said.
“I am so and so speaking from the PMO.”
“Good morning to you, Sir.” I said.
“Mr Mishra, the search operation in South Extension is on. The PM wants it to stop at once. Can you do itIJ”
“Sorry Sir, I cannot do this. I have no authority to do so.”
“No, please talk to your Deputy Director in the team to stop.”
“I am very sorry Sir, I cannot do this.”
Then two to three minutes after, a call from my chairman came.
“Mr Mishra, did you receive a call from the PMOIJ What did he say and what did you sayIJ”
“I told Sir, I cannot stop the operation.”
“Did you say him rudelyIJ If you have talked to him rudely, you must apologise.”
“Sir, I have told him politely and that is why I don’t think I should apologise.”
Then two to three minutes after, my telephone rang. I found this time it was the PM himself speaking to me “Mr Mishra, I am in a slightly embarrassing position. Can you please stop the search operationIJ”
I said, “With great respect to you sir, this cannot be stopped.” Then we discussed in Hindi for some time. I said, “Sir, “Ek bar bandhuk se goli nikalta hai kya ye wapas asakta haiIJ” The search is on. We have seized many valuable assets. Can it be stopped nowIJ” Then, I kept the phone at a rest. Hence I am of the firm opinion that the department officers can stand up to themselves without faltering in their tasks.
What is your message to the younger generations of IT officersIJ
Well, youngsters are doing their jobs in a better way than what we were doing because of their gadgets and better infrastructures. One thing I should say whoever comes to them should be dealt with care and courtesy. If they are not officious, they will reap a great dividend. They should not think that whoever comes to them is either a tax dodger or a tax evader.