90% of I-T arrears owed by just 12 people: CAG

The Comptroller and Auditor General has said that 90 per cent of the country's income tax (I-T) arrears are owed by just a dozen individuals, led by Pune-based stud farm owner Hasan Ali Khan.

Government auditor CAG also noted in a report that these demands are "unrealisable 100 per cent".

Khan, with a tax arrear demand of Rs 50,345.73 crore (Rs 503.46 billion) is followed by Chandrika Tapuriah, wife of his associate Kashi Nath Tapuria, with an outstanding of Rs 20,540.83 crore (Rs 205.41 billion), while late stock broker Harshad Mehta owes Rs 15,944.38 crore (Rs 159.44 billion) in arrears.

"The demand against individuals is highly skewed, with 12 individuals (4.3 per cent of the total cases) accounting for 90 per cent of the arrear demand.

One individual Hasan Ali Khan accounts for 43 per cent of the total arrear demand... interestingly all of this demand is categorised as unrealisable," CAG said in the report tabled in Parliament.

Khan, along with the Tapuriah couple, is embroiled in a number of cases ranging from money laundering, tax evasion and passport forgery which are being probed by various agencies like the Enforcement Directorate and Income Tax Department.

The government, in August this year, had also disclosed the names of the "top 10 individual defaulters" for Income Tax assessment year 2009-10.

Apart from Hasan Ali and Harshad Mehta, they included Kashinath Tapuriah (Rs 602.80 crore), A D Narrotam (Rs 5,781.86 crore), Hiten P Dalal (Rs 4,200.04 crore), Jyoti H Mehta (Rs 1,739.57 crore), Ashwin S Mehta (Rs 1,595.51 crore), B C Dalal (1,535.89 crore), S Ramaswamy (Rs 1,122.48 crore) and Uday M Acharya (Rs 683.22 crore).

CAG said the government has a huge tax demand of Rs 1.96 lakh crore, of which 84 per cent can't be realised due to various reasons like death, insolvency and liquidation of company.

Source : Rediff.com

ITGOA agitation for promotion and cadre review : An Update

It is learnt from ITGOA site that CBDT called Secretary General of ITGOA and informed that they are puruing the matter with UPSC and DOPT for an early promotion. The Secy Gen. insisted for adhoc promotion for withdrawal of ongoing agitattion.
A reliable source also informed that adhoc promotion from ITO to ACIT is likely to be materialize in the last week of December.

ITGOA continues agitation to fill up more than 700 ACIT posts

The Income Tax Gazetted Officers Association, the organization representing about 8,500 promottee officers of the Income Tax Department, has embarked upon an agitation programme from 25/10/2011, demanding filling up of more than 700 posts of Assistant Commissioners of Income Tax. Vacancy for the years 2010-11 and 2011-12 have not been filled up, with a delay of 17  months and 7 months respectively. The department is already facing acute shortage of manpower both at the staff and officers level, especially at the cutting edge level i.e. Assistant Commissioners of Income Tax, who are looking after the very big assessments, thus play a very crucial role in revenue collection.

            These vacant positions are being shared by the existing officers, by holding additional charges, which due to acute shortage of staff members results in unmanageable workload, causing disruption in tax payer service and revenue collection. The much needed cadre review & restructuring exercise to provide additional manpower, to meet growing number assesses and related assessment work, has been pending for more than two years.

            Considering the utter frustration of Income Tax Officers who are languishing without any promotion for around 13/14 years, despite sufficient vacancies, ITGOA had served a notice dated 10-10-2011, on the Chairman, CBDT informing about the proposed agitation starting from 25-10-2011, if the promotion from ITO to ACIT is not granted by that date. As the CBDT has failed to meet the deadline, ITGOA is constrained to adopt the following mode of agitation :

a.  Boycott & protest in front of Chairman & Members-CBDT on their official visits.

b.  Non-submission of statistical reports including dossier reports.

c.  Only time-barring assessment work to be undertaken.

d.  Black-badge & Candle-light march on 03-11-2011.

e.  Non-conduct of Survey u/s.133-A including TDS Survey/Verification etc.

f.   Mass Walk-out from 2.00 PM on 15-11-2011

The agitation will be further intensified thereafter, including strike.

            ITEF (Income Tax Employees Federation) has committed moral support for the above agitation, as the promotion from ITO to ACIT will be percolating upto the juniormost official in the Department and Cadre Review & Restructuring will provide adequate staff & officers, thereby taking care of the work-load. Besides, these demand will surely boost the Revenue, which is primary for sustaining the developmental work undertaken by the Government.

(Rajesh Menon)

Secretary General

ORDER NO. 175 OF 2011- Ad. VI.(adhoc promotion to the grade of JCIT (OSD))

Long awaited promotion from DCIT to JCIT released
ORDER NO. 175 OF 2011- Ad. VI.(adhoc promotion to the grade of JCIT (OSD))

New form for PAN application, with two colour photos.

Income Tax Dept has notified new form and instruction for PAN application. This will come into effect from 1st day of November 2011

View the Notification

View the Instructions

Download New Form 49A for PAN application

Government increases collection target, silent on cadre review proposal

The finance ministry has revised the Budget estimate of direct tax collection upwards by Rs 53,000 crore to Rs 5.85 lakh crore. The higher target is an increase of 31% over last yearas collection of Rs 4.46 lakh crore. The increase is intended to bridge the shortfall that might occur due to reduction in customs duty on crude oil to offset price rise. But it has invited strong reaction from Income Tax officials, who are grappling with staff shortage.

Dept. Exam for ITOs and ITI's : Download Admit Card.

Download Admit Cards for DE 2011.


Calculator Allowed in examination
"You are aware that the "Examination Rules" notified by the Board for the year 2011 prohibits the use of Calculator by the candidates in the Examination. Upon representation from various circles, we took up the matter with the Chairman and the same was subjected to discussion in the quarterly meeting with the Chairman held on 20^th July, 2011. The Chairman was of the opinion that calculators should be allowed since the same is being used for the day to day work also. The official version contained in the minutes of that meeting circulated by the Board vide F No. B-12020/2/2011-Ad.IX dated 17.08.2011 is as under:

"The staff side demanded that calculators should be allowed in the exam.

The Chairman opined that in view of present scenario of technology upgradation, the demand could be considered justified as it would test their skill in the use of such gadgets. He asked DIT (Exam) to examine this issue and make appropriate proposal."

We are yet to hear from the Directorate whether it has got the proposal approved and instructions issued to the field formations.Meanwhile you may inform the candidates that they may use the calculator in the Departmental Examination wherever necessary."

Source : ITEF

Digital Signature mandatory for efiling of Firms/Indvs u/s 44AB

Digital Signature Certificate made mandatory w.e.f 1st July 2011 for Firms and Individuals whose accounts are required to be audited u/s 44 AB of the Income Tax Act' 1961.
Earlier it was mandatory only for companies. 
View the Notification

IT Cadre review and restructure : information regarding field structure sought.

DIT(HRD), CBDT urgently sought information regarding field structure for proposed restructuring of the Income Tax Dept.

This information is to be sent by all CCIT/CITs on an urgent basis. Only today(26/07) evening it has been faxed from Delhi. In this light it can be assumed that the process is very near to finalization.

View the details

Rs 80 crores to be disbursed against 1% incentive scheme for 09-10.

Committee to recommend schemes for utilization of 1% incremental revenue of Rs.80.63 crore earned during F.Y. 2009-10 - reg.
View the details 

Department has sought suggestion from all officers/officials in this regard, which has to be submitted within 25th July 2011 for consideration by a high powered committee. It may be mailed to navneet.manohar@nic.in 

A section of employees have demanded laptop for Group C employees....."

"a proposal to the empowered committee to provide laptop/notebook to all Group C employees in the department out of the amount sanctioned for incremental revenue of Rs 80.63 crores earned during F.Y. 2009-10.

It may be mentioned that only the Group C and formerly Group D employees were left out from the earlier scheme of distributing incentive. As the department is putting thrust and more importance in outdoor activities like search/survey, enquiries/ holding seminars and awareness programmes, it will be an added infrastructural boost up for the employees who have to work outside the normal duty hours and workplace."

Income Tax Departmental Examination in September this year.

In the year 2011, the dept. exam for ITOs/ITIs will commence on 14th September and Ministerial Exam will start on 21st September.

Ministerial Exam will be held as per the existing rules and will be descriptive as usual.

Last Date of application for exam : 29.07.2011

View the detailed circular and Time Table.