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 Union Budget 2026: Will Real Estate Get Affordable Housing, Rental Policy & Home Loan Tax Relief?

Income tax department working on new 3-part strategy to optimize tax collection
September, 01st 2017

The Income tax department is drawing up a strategy to enhance the efficacy of the present tax collection procedure and as a result, get more taxpayers under its fold.

The Income tax department is drawing up a strategy to enhance the efficacy of the present tax collection procedure and as a result, get more taxpayers under its fold.

The strategy involves three parts--functional specialisation, jurisdiction-free assessment, and taxpayer segmentation, the Business Standard reported.

Firstly, the "functional specialisation" plan will divide functions among multiple persons specialising in separate areas of tax assessment, verification, returns and so on. Currently, one officer is assigned to handle the entire operation for each taxpayer.

Secondly, "jurisdiction-free assessment" would empower any tax official to notify any taxpayer in the country through email, even if the said person is not under the officer's jurisdiction. This is also expected to cut back corruption as the various processes will be segmented and handled by separate people.

The third scheme is "taxpayer segmentation" which will separate small time taxpayers from big players. The department wants to be in regular interactions with big companies and businessmen as the stakes are large too.

This year the tax department has a high target to meet. Their aim is to collect Rs 9.8 lakh crore in FY18, 15 percent more than what they had collected last fiscal.

Recently, the Central Board of Direct Taxes (CBDT) directed the Income Tax department to "scrupulously" monitor tax collection. The board tax collection in FY17 was slightly less than its target.

Net income tax collection till June 15 grew at a healthy 26.2 percent year-on-year to Rs 1,01,024 crore from across the country, according to a PTI report.

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