Promising a carrot and stick policy, Finance Minister P Chidambaram on Wednesday said taxmen will use annual information report, tax information network and the new bank cash transaction tax to track tax evaders.
"I don't believe in heavy handedness. In certain cases we have to resort to search and seizures. But it is a thing of the past and will be replaced by information gathering and intelligent use of that information," he said after launching e-payment of excise duty and service tax in New Delhi.
The government will use AIR, TIN and BCTT to track tax dodgers, he added.
"Tax rates must be moderate, tax administration should be user-friendly and enforcement must be impartial and strict," he said.
Reeling out statistics, he said only 80,000-85,000 individuals show income of Rs 10,00,000 and above. "I am sure the number is much higher than that. Therefore, we must find those who are not paying taxes," he said.
"If non-tax payers pay taxes, tax rates could be further moderated," he said, adding non-taxpayers will be eager to pay taxes if the tax administration was user-friendly.
"In the course of time, it is our endeavour to bring down tax rates to the Asean level," he said, while announcing steps like 'Help Centres' for small tax payers and e-payment facilities for 5,500 large firms who contribute 90 per cent of excise duties.
Asserting that the United Progressive Alliance government has kept its promise of bringing down both direct and indirect tax rates, he said India will soon have tax rates that are the best in the world.
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