Friday, July 01, 2005
Rat-infested government cupboard
The Financial Express reports:
Banks, co-operative societies and public companies with interest income below Rs 5,000 on deposits will now have to file quarterly return of non-deduction of tax, as per a finance ministry notification issued on Tuesday. The government intends to use this information to track assessees evading tax through multiple accounts.MadMan, who pointed to this story via email, wrote:
They [the government] already track interest income above Rs. 5000 through TDS returns, and now they want to track income below Rs. 5K. So now they're effectively tracking all interest income on fixed deposits.Well, even rodents need food.
The sad part is that the government has nothing close to the IT infrastructure or even computerised records to make any use of all this data. All it does is create volumes of extra paperwork that will rot in some rat-infested government cupboard.