Union Finance Minister Arun Jaitley on Saturday said India should become taxpaying society rather than tax evading society. Addressing members of trade and commerce bodies, Chartered Accountants and Income Tax officials on the ‘Income Declaration Scheme 2016' in Bengaluru, the Finance Minister said taxation was the only source of revenue for the Government and India should become taxpaying society.
He said, "Taxation is the only source of revenue for the Government and therefore those who earn, it is an inherent principle of governance that they must pay. Therefore in order to nudge these people to pay, the rates have to be kept reasonable and harassment at the hands of the tax man must be the least ; so it is important for the revenue department that the relationship between it and the assessee is non adversarial, the contact between each other should be least, that is the reason why things have been made online" he added.
"It is an opportunity for tax payers to come out clean, clean up their books, sleep well and live with their heads held high. Those who pay taxes lead a life without fear," Jaitley said.
He said "I'm sure it's an opportunity which is being granted, you will understand the idea behind this scheme is to slowly nudge India into becoming more and more compliance State. As you become a compliance state, I think it is good for the country..." he added.
He said the tax rates are reasonable in the country and in the future non-payment in all likelihood is going to be detected. Jaitley said it is extremely important to pay taxes, also at a time when India is emerging as an economy. He said "Tax department is aware of the sectors in which unaccounted money is generated. It is very unpleasant duty for any State to start the process of big brother watching."
In the he event organised by Department of Income Tax in he said "If you look at the developed world or even emerging economies and compare them with India and do this comparative study of international taxation our tax rates are extremely moderate compared to the rest of the world."
He said "as the world is proceeding on and on, with the advent of technology, more openness and transparency coming into the system it is going to extremely difficult to conceal evasion or avoidance."