Govt: No Proof for Rise in Tax Evasion

In a written reply to the Upper House of the Parliament, Minister of State for Finance SS Palanimanickam said that there is no evidence suggesting rise in the incidence of evasion of tax payments over the last few years.
He added that the collection of direct tax has increased by more than six times over the last 10 years (2001-02 to 2010-11). Further, he said that the growth in the direct tax to GDP ratio for the same period has doubled from 3.03% to 5.66%, indicating improved tax administration and better compliance.
In another response to Rajya Sabha, the minister stated that a committee, with CBDT Chairman as its head, has been set up to strengthen laws for curbing the generation of black money in the country and its illegal transfer outside India, and recovering the same.The committee, after examining the existing administrative and legal framework, and consulting all stakeholders, will be submitting a report within six months.