The taxman will send you thank you mail for paying taxes on time

If you have been paying taxes honestly, check your e-mail inbox. Chances are you would have received a citation from the Central Board of Direct Taxes.

As reported in October, the tax authorities are awarding certificates and thanking taxpayers for their “contribution to nation building”. This unusual approach is meant to encourage people to pay their taxes.

Taxpayers who have no outstanding tax liabilities and filed their returns on time will receive these certificates: bronze for paying Rs. 1 lakh to Rs. 10 lakh; silver for Rs. 10 to Rs. 50 lakh, and gold for Rs. 50 lakh to Rs. 1 crore.

The majority of taxpayers would be in the bronze category. There’s also a platinum category for people paying over Rs. 1 crore in tax.

Tax authorities have been making a push in raising tax collections. This year alone the government sent out seven lakh notices to individuals and companies for high-value transactions without quoting PAN, non-filing of tax returns and suspicious transactions.

According to CBDT, only about 1% of India’s population paid taxes in the year 2012-2013. Overall, about 14 lakh people accounted for 75% of the total personal income tax collection.