Mohinder Verma
JAMMU, Oct 17: As the unprecedented floods have caused major setback to the traders and businessmen of Jammu and Kashmir, the Income Tax Department, J&K Circle has approached the Central Board of Direct Taxes (CBDT) for revision of Budget Targets for the current financial year and decision in this regard is likely in near future.
“The floods have badly affected the business activities in major parts of Jammu and Kashmir particularly in Kashmir valley and people are still unable to start their usual business due to huge economic loss and in such a situation it is more than herculean task to meet the target”, official sources told EXCELSIOR.
For the current financial year, the Central Board of Direct Taxes has fixed Budget Target of Rs 1400 crore as against Rs 880.58 crore during the previous financial year (2013-14). Such a huge increase in the target for 2014-15 financial year was fixed keeping in view the remarkable performance registered by the J&K Circle during previous financial year.
According to the official figures, in 2012-13, the Budget Target for J&K Circle was Rs 696.43 crore and the actual collection was Rs 820.94 crore. However, during 2013-14 financial year, the target was increased by Rs 184.15 crore (26.44%) and fixed at Rs 880.58 crore.
The J&K Circle not only easily met this target but also surpassed the same by 16.70% and made whopping collection of Rs 1057.20 crore. “But the prevailing situation in Jammu and Kashmir is not conducive to meet the target of Rs 1400 crore”, sources said.
“Had there been no devastating floods the J&K Circle would have either achieved the target fixed for the current year or come closer to the same but the situation at the moment is that any strong step from the department against the assessees would not be taken in right perspective and may lead to unnecessary criticism”, they said.
Disclosing that J&K Circle has made a formal request to the CBDT to revise the targets downward, sources said, “Income Tax authorities in J&K would be comfortable even if the target is fixed at the actual collection made during the previous financial year”. Revision of targets does not mean that department would go slow in tax realization and all efforts would be made to surpass the total collection made during the previous financial year, they added.
About the notices recently served to the businessmen and traders in Kashmir valley and subsequent hue and cry, they said that neither Union Finance Ministry nor CBDT has restricted the Income Tax Department from fulfilling its statutory duties and department has not committed anything wrong by doing so. “The revision of Budget Target for the current financial year would be a sort of relief for the tax payers from the Income Tax Department in the hour of crisis”, sources added.
“Moreover, the response to the notices would be filed only during the next financial year as such there is no justification behind blowing the issue out of proportion and relating it to the devastation caused by the floods”, sources said.
They said that Department has decided to hold interactions with the bodies of traders and businessmen in Kashmir valley to seek their cooperation and support in ensuring compliance by the assessees to their legal obligation of paying taxes as per their income. In this regard, Income Tax Commissioner, J&K Circle, A K Thatai would personally visit the Valley in the coming days.
The Department has also geared up efforts to make its offices functional at Kashmir valley in the near future for the convenience of the assessees.
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