Fake:It is not compulsory for you to deposit 18 per cent of your income in Compulsory Deposit Scheme

New Delhi, Apr 27: There is a message circulating on WhatsApp that claims that the government will bring in an Act which would make it compulsory for taxpayers to deposit 18 per cent of their income.

The message reads, 'be prepared to shell out money. Government is planning to bring in CDA-1963. The Compulsory Deposit Act 1963 applies to all taxpayers, property owners and all government employees. It should be noted that such measures are not unprecedented. In the aftermath of the 1962 and 1971 wars, much stronger measures had been instituted. The Compulsory Deposit Scheme (ITP) Act 1974 forced taxpayers to deposit up 18 per cent of income in the scheme.'

This is a totally baseless claim. The government has no plans of making taxpayers deposit 18 per cent of their income.

Meanwhile, a report of 50 IRS officers of the I-T department on revenue mobilisation and economic impetus to fight COVID-19 pandemic is ill-conceived, and an act of indiscipline as well as violation of service conduct rules, Finance Ministry sources said.

These officers from the Indian Revenue Service (IRS) Association in a report titled 'FORCE (Fiscal Options & Response to the COVID-19 Epidemic') suggested raising tax rate to 40 per cent for those with income above Rs 1 crore, from 30 per cent at present, and levy of wealth tax for those with over Rs 5 crore annual income.