Monday, August 10, 2020
Home Government and Policy Government junks report by IRS officials that suggested tax hike, orders probe against concerned...

Government junks report by IRS officials that suggested tax hike, orders probe against concerned officers for violation of code of conduct

One of the recommendations of the report was the introduction of the wealth tax to be charged to those with a net worth of ₹5 crores or more. Besides, the IRS officers suggested levying a one-time 4% 'COVID Relief Cess' on individuals with more than ₹10 lac annual income.

On Sunday, the Finance Ministry had junked an unsolicited report titled ‘Force 1.0’ (Fiscal Options & Response to Covid-19 Epidemic) drafted by 50 Internal Revenue Service (IRS) officers on the official Twitter handle of the IRS Association. The Chairperson of the Central Board of Direct Taxes (CBDT) has also been directed by the Ministry to seek an explanation from the officers about their misconduct.

An inquiry has been initiated into the matter to check whether the “ill-conceived views” aired by the officers violate Extant Conduct Rules. While reiterating that CBDT did not ask the IRS officers to prepare any such report, it further stated that the unauthorised views of the officers did not reflect the official stand of the Finance Ministry of the CBDT.

The Contentious Report

In the contentious report, the IRS officers suggested introducing the ‘wealth tax’, over-burdening the rich, and charging an additional 4% cess to bridge revenue deficit caused due to the Wuhan Coronavirus outbreak. As per the 43-page report, the Government can earn up to ₹18,000 crores by implementing the suggested proposals.

One of the recommendations of the report was the introduction of the wealth tax to be charged to those with a net worth of ₹5 crores or more. Besides, the IRS officers suggested levying a one-time 4% ‘COVID Relief Cess’ on individuals with more than ₹10 lac annual income. Moreover, the document also proposed taxing individuals with more than ₹1 crore annual income at 40%, which is 10% higher than the current 30%. As such, the income tax liability on such individuals will be close to 56%.

- Advertisement -

Along with the above measures, the IRS officers also recommended increased surcharges for foreign companies in India, creation of an amnesty scheme to collect unpaid tax, sanctioning of ‘Coronavirus Savings Certificates’ for investments not more than ₹2.5 lacs for 5 years, taxation of multinational firms making royalty payments to their parent companies and 3% equalisation charge to e-commerce companies.

Finance Ministry miffed over the report

The report drew the ire of the Ministry of Finance (MoF) for two primary reasons. First, the action of the IRS officers is in direct violation of the rules of conduct that prohibits them to air their personal views without the government’s permission. Second, the report has come to light at a time when the Central Government is trying to win over the trust of corporate houses and industrialists.

“Increased taxes or proposals are bad news to improve the confidence of the industrialists and corporates in the current situation. There is distress and the government is looking at incentivising businesses to restart the economy”, an MoF official was quoted as saying.

IRS distances itself

Soon after the so-called report received massive criticism on social media platforms, the IRS association distanced itself from the controversy. In a statement, the IRS association stated that the concerned paper prepared by young officers suggesting policy measures has been forwarded by the association for the consideration of the government. It does not represent the official view of the entire IRS or the I-T department.

Economic Measures announced in March

In a press conference held last month, Finance Minister Nirmala Sitharaman made key announcements amidst coronavirus crisis that has wrought havoc on the economic mood of the country. In a big relief to direct taxpayers, the Finance Minister extended the last date for filing personal income tax for FY 2018-2019 to June 30, 2020. Moreover, the interest rate levied on delayed payments have also been reduced to 9% from 12%.

The Central Government has also extended the deadline for filing Goods and Services Tax (GST) returns for March, April, and May 2020 to 30 June 2020. For companies with annual turnover less than ₹5 crores, no interest/late fee/penalty will be charged. For businesses with higher turnover than 5 crores, only the interest amount will be charged. Late fee and penalty have been waived.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Rahul Gandhi even loses in Twitter poll by India Today

Amusingly, India Today's other poll also binned Rahul Gandhi and his monologues which the media house tried to pass off as criticism.

Uttar Pradesh: PFI and other Islamist organisation under scanner ahead of Independence Day celebrations in wake of Ram Mandir Bhoomi Pujan

Security has been increased across India, especially in Uttar Pradesh ahead of Independence Day, keeping in mind the threat perception just days after the Ram Mandir Bhoomi Pujan.

Rajasthan: Muslim auto driver was thrashed by drunk miscreants for tobacco and money, communal angle not confirmed by police

Muslim Auto driver in Rajasthan was thrashed for looting him, not for not chanting Jai Sri Ram as alleged, confirms police

“Mumbai gave him prosperity, not Bihar”: Sanjay Raut attacks Sushant Singh Rajput’s family, throws mud on deceased actor’s father

Sanjay Raut said that Bihar govt should not have interfered in the matter of Sushant Singh Rajput as the actor was a Mumbaikar

Mocking Dalit leaders Arjun Ram Meghwal, Ramdas Athawale shielding Tablighi Jamaat: How liberal media betrays its bigotry

Arjun Ram Meghwal tested positive for the Wuhan Coronavirus and was subjected to mockery.

Was Rajya Sabha MP Sanjay Singh thrashed by Dalit Morcha of AAP, asks BJP leader Kapil Mishra

Kapil Mishra made the comment at a time when Sanjay Singh from the AAP has been leading a spirited effort to brand the BJP 'anti-Dalit'.

Recently Popular

Sushant Singh Rajput’s brother-in-law gives a befitting reply to toxic journalism of Shekhar Gupta’s portal

Sushant Singh Rajput's brother-in-law Vishal Kirti on Sunday slammed Shekhar Gupta and his portal for toxic journalism.

Who really is Binod? Read how one Youtube comment triggered a bizarre meme fest

The name 'Binod', which has now become the talk of the town and trending on Twitter, originated from a YouTube channel 'Slayy Point'

Reports claim Sushant Singh Rajput’s former manager Disha Salian’s post-mortem report says she was found nude after her death, Mumbai police deny the reports

According to the post-mortem report of Disha Salian, her body was found nude, which was not revealed by the police so far

Rhea Chakraborty leaks WhatsApp conversation to accuse that Sushant Singh Rajput considered his sister Priyanka as ‘pure evil’

Rhea Chakraborty tries to prove that Sushant Singh Rajput did not like his family, releases chat messages with him

“Delete the video or there will be negative consequences,” Chinese embassy threatens India based strategic affairs portal over a critical video on Xi Jinping

Chinese authorities were irked with the portrayal of Xi Jinping in a 'negative light' by Indian portal 'Strat News Global run by Nitin A Gokhale

Pakistan: Maulvi rapes child reading Quran in mosque in Sindh province, caught on CCTV

Muslim Cleric in Sindh province in Pakistan on the run after video of hem raping a child inside a mosque emerges, case registered

Rahul Gandhi even loses in Twitter poll by India Today

Amusingly, India Today's other poll also binned Rahul Gandhi and his monologues which the media house tried to pass off as criticism.

Bengal: Second accused Mabud Ali arrested in the suspected murder of BJP MLA Debendranath Roy, had borrowed Rs 1 crore

While the West Bengal police has ruled out 'foul play', the BJP unit of West Bengal has alleged that the Debendranath Roy was murdered.

Nepal: KP Oli insists that Madi municipality is ‘Ayodhyapuri’, plans to build Mandir and do Bhoomi Pujan there

Nepal PM KP Oli is adamant on his claim that Madi municipality is the real 'Ayodhyapuri'. Lays out plan to build a temple and do Bhoomi Pujan.

Delhi residents receive calls from unknown numbers trying to incite communal tension on Ram Mandir ahead of Independence Day, security tightened

It should be noted that Delhi's Khajuri Khas is the area which was amongst the worst affected in the anti-Hindu riots that broke out in February this year after the anti-CAA protests turned violent.

A call from Ireland: Read how efforts of Delhi and Mumbai police prevented a potential suicide

Facebook Ireland, Delhi Police and Mumbai Police worked together to save a suicidal man.

Uttar Pradesh: PFI and other Islamist organisation under scanner ahead of Independence Day celebrations in wake of Ram Mandir Bhoomi Pujan

Security has been increased across India, especially in Uttar Pradesh ahead of Independence Day, keeping in mind the threat perception just days after the Ram Mandir Bhoomi Pujan.

Chhattisgarh: 100 kg cow dung collected for sale under Godhan Nyay Yojna stolen away

The Baghel government had launched the Godhan Nyay Yojna in July. It is aimed at enriching the rural economy.

Rajasthan: Muslim auto driver was thrashed by drunk miscreants for tobacco and money, communal angle not confirmed by police

Muslim Auto driver in Rajasthan was thrashed for looting him, not for not chanting Jai Sri Ram as alleged, confirms police

“Mumbai gave him prosperity, not Bihar”: Sanjay Raut attacks Sushant Singh Rajput’s family, throws mud on deceased actor’s father

Sanjay Raut said that Bihar govt should not have interfered in the matter of Sushant Singh Rajput as the actor was a Mumbaikar

Rhea Chakraborty leaks WhatsApp conversation to accuse that Sushant Singh Rajput considered his sister Priyanka as ‘pure evil’

Rhea Chakraborty tries to prove that Sushant Singh Rajput did not like his family, releases chat messages with him

Connect with us

239,751FansLike
425,471FollowersFollow
294,000SubscribersSubscribe