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Non-compliance being defended in name of privacy, says Jaitley


Stating that linking of Aadhaar with PAN was an effective anti-evasion measure, finance minister Arun Jaitley said on Monday that "non-compliance" were being defended in "the name of privacy".
Addressing tax officials to mark the Income Tax Day, the FM said a series of steps taken by the government were intended to expand the tax base, make processes more reasonable, make rates more reasonable, and enrich and empower the country.
"You take some effective anti-evasion measures like linking of PAN with Aadhaar to avoid multiple PAN cards or to keep a watch on the nature of expenditure that the expenditure is compliant with the declared income of an assessee, you will find noncompliances being defended these days in the name of privacy," Jaitley said.
"Now this is where we have to get out of, and the debate in favour of compliances has to be a debate based on creating a more ethical and a more complaint India." FM said net impact of demonetisation, benami law and other executive actions have created an incentive in favour of the honest man and were "intended to give sleepless nights to non-compliant and the dishonest"
"We cannot allow the traditional normal, which existed in India, to continue. Non-compliance itself had evolved into a standard operating procedure. These days we are finding political leaders resorting to this," Jaitley said, calling for setting deterrents against "such kind of practices" and "change in mindsets".
He said the tax department was resorting to use of technology to cut down interface with assessees.
"This will cut down on compliance cost, cut down corruption and harassment and therefore incentivise the honest taxpayer." He said the government was now working on ensuring transparency in political funding.
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The Economic Times, New Delhi, 25th July 2017

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