Prime Minister Narendra Modi on Saturday warned of tough action against companies indulging in tax evasion and generation of black money. Addressing the chartered accountants on the foundation day of the ICAI (Institute of Chartered Accountants in India), Modi said over 37,000 shell firms have been detected and registrations of more than 1 lakh companies have been cancelled. He added data mining was going on post-demonetisation and over 3 lakh registered companies have come under scrutiny for suspected dealings.
“The ability to shut down 1 lakh shell companies comes from the strength of being a patriotic Indian. Companies who break the law will be acted against more severely in the future,” the PM said. He added CAs should take a pledge to bring people in the tax bracket rather than boasting about the number of clients they have saved from paying taxes.
The PM also rolled out a new chartered accountancy course on GST. The exam will be introduced this year in November and the weightage of GST-related questions would be 10 marks. However, starting May next year, the exam will carry full 100 marks.
Talking about black money, Modi said his Government along with Swachchh Bharat Abhiyan (Clean India), is also cleaning India’s economy and it has taken tough stand against those who have looted the nation. In a strong message to the CA community, he asked as to why action has only been taken against just 25 of them for irregularities, while more than 1,400 cases have been pending for many years. The PM said it is a bitter truth that only 32 lakh Indians have declared over Rs10 lakh income, despite crores of them being in high-end professions.
“I want to ask you all, post-demonetisation there must be someone who has helped these law breakers/companies. Do you really think there are just 32 lakh whose income is above 10 lakhIJ’ the PM said.
“There are over one crore engineers and management professionals, and over 8 lakh doctors in India. Which means we have many people who are in professions that are known to be respectable. But only 32 lakh people say their income is more than 10 lakh. How is this possibleIJ” he added.
He said the impact of the Government’s steps on checking black money is clear from the latest figures of Swiss banks, which show that Indians’ money parked there has dipped to a record low. The PM urged the CAs that if they know anyone with black money, they should warn them that they would not be spared.
“Any tax payer will pay tax when the conditions are favourable to pay tax. But if a tax payer is surrounded by people who are advising him for all the wrong reason, then the tax payer will definitely shy away from paying taxes.
Modi said chartered accountants need to safeguard society’s economic health and they have a big responsibility. “Your signature is more powerful than that of the Prime Minister and the Government also believes the accounts signed by you,” he said.