The Reader

The government will arm its income tax officials with details on assets of those whose tax payments are pending, a move aimed at meeting the Rs 13,153 crore targets for arrear collection this fiscal.

With tax arrears of Rs 2,13,646 crore due as on April 1 this year, the Central Board of Direct Taxes (CBDT) is following an Action Plan that includes swift action by tax officials and confiscating assets of defaulters, among others.

An effective strategy for collection of arrears and current demand is to empower the AO (Assessing Officer or the tax official) with relevant information regarding the movable and immovable assets of the assesses..

The government has already collected tax arrears of Rs 3,548 in the first quarter of this year (April-June) and the collections were in line with expectations.

The action plan for collection of tax arrears includes quick action by the tax official, ascertaining the tax liability for attachment and recovery of assets of the person whose tax arrear is pending.