YESTERDAY several newspapers carried reports about Income Tax Department contemplating arrest of tax defaulters. The banner headlines from some of them:
- PTI, Statesman: Wilful defaulters: IT dept to use powers to arrest, detain;
- Times of India, Deccan Chronicle: Arrest, detain wilful defaulters, Income Tax department tells officers;
- India Today: Income Tax defaulters, beware: You may be arrested or detained soon;
- Navhind Times: IT dept gets tough; seeks arrest of willful defaulters.
- Huntnews: Taxmen target non-filers, plan to clear high-value appeals in 2016-17.
Now the CBDT has in a Press Release clarified:
Certain sections of the press have been carrying news reports today that Income Tax Department is going to arrest wilful defaulters of tax.
In this regard, it is clarified that no such statement has been authorised by the Income-tax Department. Though the provisions for arrest and detention by the Tax Recovery Officers in respect of the non-compliant tax defaulters are contained in the Income-tax Act, these are used extremely sparingly.
What was the provocation for leading newspapers to scream the arresting news?
Recently CBDT released its Central Action Plan 2016-17. Page 84 of the Plan stated, “In respect of non-compliant defaulters, the provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II should be invoked by the TRO. Stringent action can be taken in suitable cases including use of the provision for prosecution u/s 276C(2) of the Act.”
It was this sentence in the routine Action Plan which the CBDT issues with boring regularity every year that prompted these newspapers to threaten taxpayers that an impending arrest was looming large.
The 2014-15 Action Plan also had this, “In respect of non-compliant defaulters, the provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II should be invoked by the TRO. Stringent action can be taken in suitable cases including use of the provisions for prosecution u/s 276C(2) of the Act.” You will notice the sentences are identical.
And see this news item:
IT department to arrest tax evaders
The Income Tax Department is all set to crack the whip on tax defaulters by invoking its power, which has not been used for many years, to arrest and prosecute evaders.
Looks similar to the above mentioned reports – this is from the Hindu dated 1 st June 2011 – yes five years ago.
This was hot news for many newspapers yesterday. This, unfortunately, is the way that our newspapers report tax matters.
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