Protesting the handing over of permanent account number cards' allotment to a Unit Trust of India subsidiary and moves to outsource the processing of returns, the Joint Council of Action of Income Tax employees and officers on Tuesday demanded that the decision be withdrawn, failing which the staff would resort to a non-cooperation movement.

"By outsourcing the allotment of PAN cards to UTI Investor Services Ltd, the assessees are being exposed to various hazards like extortionists and it is illegal since the information collected by tax department is confidential in nature," Rajarshi Das Gupta, secretary general, Income Tax Gazetted Officers Association, told a press conference in New Delhi.

The federation also resent the government's decision to outsource the processing of IT returns.

Even after one month of being entrusted with the work, UTIISL has not submitted one single card to the Central Board of Direct Taxes, though it was supposed to do so in 15 days, he said.

Alleging that UTIISL was only "a facade" for a number of small players engaged in data-base creations, he said the work of allotment had been subleased to many other small players in the market, thus putting the security of the information at risk, especially considering the instance of "extortions and misdemeanours" in the society.

"The Joint Council has decided that if the decisions are not rescinded before August 31, the members of two federation will organise a total non-cooperation movement," Gupta said.

He also said there was a need to provide certain limited financial and functional autonomy to CBDT and allow unhindered investigation and intelligence operation to unearth evasion and consequent generation of black income.

Referring to the minimal scrutiny assessment, K K N Kutty, secretary general, Income Tax Employees Federation, said, "an informal VDIS scheme" was prevailing in the system.

He said at present hardly two per cent of assessess were scrutinised and doing away with inspection would make a dent in the revenue collection.

"There is a need to ensure that a predetermined percentage of cases are scrutinised every year to act as a deterrent against avoidance and evasion of tax," Gupta said.

By streamlining the I-T department, with necessary infrastructure and sufficient number of computers, the Centre should augment the direct tax mop up, he said, adding, "The government could reduce dependence on indirect taxes and ease the burden of the common man in the long run."

The direct tax-GDP ratio had the potential to go up to six per cent as compared to 2.8 per cent as of now, Kutty said.

Gupta alleged the government had gone back on the promise given to the two federations as well as the Indian Revenue Officers Association that outsourcing would not be done for the I-T department.

The other demands were putting an end to privatisation, downsizing and outsourcing of processing of returns, and filling up of vacancies.