Govt to come out with Income Tax Code: FM

New Delhi, May 23: Finance Minister P Chidambaram today announced that the government will come out with an Income Tax Code before the calendar year and said the advertising blitz will be launched in the media to sensitise the public for availing the services of Tax Return Preparers (TRPs).

Addressing the Convocation Ceremony of the first Batch of TRPs here, Mr Chidambaram said the TRP scheme was a bold attempt by the Income Tax Department to provide quality taxpayer service to the small and medium taxpayers so that the assesses can fulfill their tax obligation with ease.

''It is an attempt by the Department to deliver the services to its constituents right at their doorstep,'' he said.

He said the initiative of the government to encourage young men and women graduates to embark upon a successful career as TRPs and eventually as financial advisors to small and marginal taxpayers.

Projecting direct taxes as a progressive tax and the taxes of the future, Mr Chidambaram said an unprecedented and the highest ever tax collection of Rs 2,29,505 crore was achieved by the Income Tax department. The cost of collection was the lowest in the world and placed the figure in this regard at 0.59 per cent.

Allaying the widely held perception that tax laws and procedures in India were among the most complicated in the world, Mr Chidambaram said even in completely free enterprise economies like the United States tax laws were far more cumbersome.

India's tax return forms, especially the return form ITR-I, were among the simplest in the world, he said.

The TRPs will help collect more taxes and inculcate the habit of voluntary tax compliance among small and marginal taxpayers.

The Finance Minister distributed certificates to 23 TRPs, each of whom had scored 100 per cent in the certification test.

Mr Chidambaram said more than 90,000 people had applied for the training as TRPs, of which 47,227 candidates were shortlisted by the training partner NIIT for entrance examination. As many as 4,517 candidates joined the training, out of which 3,737 candidates scored 60 per cent marks or more in their 'end of course examination' to qualify for certification.

He said it was heartening to note that 966 candidates which is 27.46 per cent of the candidates qualified as Tax Return Preparers were women.

The Government intends to forge a long-term relationship with the TRPs, he said.

The Departmental Website and a Toll free helpline will provide the contact details of the TRPs to the taxpayers who propose to utilise their services.

In her welcome address, CBDT Chairperson Indira Bhargava said the TRP Scheme announced in the Union Budget 2006-07 was one of the boldest attempts by the Income Tax Department to provide quality taxpayer service to the small and marginal taxpayers so that the citizens can fulfill their tax obligation with ease.

She said the Department has already set up a Resource Centre that is headed by a Commissioner of Income-tax to monitor the implementation of the scheme. The Resource Centre will constantly monitor the work of the TRPs in the field and issue quality alerts to them, as and when needed.

The TRPs will also be required to undertake periodic online training and exam, Ms Bhargava said.

UNI