Government sets up panel to suggest ways for recovery of tax arrears

The Central Board of Direct Taxes, the apex direct taxes body, has set up a panel to suggest ways to recover income tax arrears where taxpayer is not traceable or does not have adequate assets for recovery.

The panel would also examine the possibility of engaging the outside agencies to locate the whereabouts of non traceable assessees or their assets and also look at the feasibility and methodology of putting the names of chronic tax defaulters in public domain.

The government has been under pressure to act against black money with civil society activists also demanding that names of tax evaders be made public.

The announcement comes on a day when social rights activist Anna Hazare is sitting on a day-long fast at Rajghat to protest against the police excesses on followers of yoga guru Ramdev last Saturday.

The committee, headed by Anita Kapur, Director General of Income Tax (Admn), will suggest ways to recover tax demand from assessees who are not traceable.

This new committee is a part of series of initiates that the government has taken to tackle the menace of black money. It had set up a high level committee to suggest a legal framework for confiscating black money and declaring it a national asset.

Besides, a study has also been instituted to quantify unaccounted income and wealth stashed within and outside the country. The CBDT committee will examine the feasibility and methodology of putting the names of chronic tax defaulters in public domain.