How does the Gov find out about tax evasion

ash.investor · #11 7th November 2006, 12:40 AM

Hi All,

I am working in ICICI bank software development team and I some idea about this.

In ICICI and most of the other banks all the data of the customers are stored in a centralised database server. The bank officials usually run a query which is conditioned to list all the names of the customers who have more than Rs. 50 lac in their account as balance. This data is forwarded to Income Tax Dept. on regular basis. Similar is the case for ICICI Direct. A query is executed for all the customers who have portfolio of more than 50 lacs and it again forwarded to IT Dept.

Apart from this, even NDSL and CDSL keeps a track of all the customers and their trades and forwards the data to IT-Dept.

The IT-Dept randomly selects some records and does rigourous scrutiny and eeven if they find some gap, then the person is penalised very heavily and not only for that year but also for the previous years.

Regards,
a$h.investor

sri_guni · #12 16th December 2006, 08:04 PM

<QUOTE>More benefits can be reaped if the government is able to efficiently manage the money it receives than from garnering much more taxes which will eventually end up feeding a corrupt, in-efficient white elephant.

Tax rates in India are very high when we compare them to other Nations in Asia. Today an individual is paying as high as 55% of his income as tax to the government.</QUOTE>

I had a question to ask, do governments need to tax individuals to run, as I have seen some of the middle east countries do not have any taxation system, I was in dubai for around 4 years I never paid any income tax (yes- they have resources like oil etc but even our country has many resources), my questions is can a democratic government run without tax?

aca_trader · #13 16th December 2006, 11:45 PM

Quote:

Originally Posted by sri_guni

<QUOTE>More benefits can be reaped if the government is able to efficiently manage the money it receives than from garnering much more taxes which will eventually end up feeding a corrupt, in-efficient white elephant.

Tax rates in India are very high when we compare them to other Nations in Asia. Today an individual is paying as high as 55% of his income as tax to the government.</QUOTE>

I had a question to ask, do governments need to tax individuals to run, as I have seen some of the middle east countries do not have any taxation system, I was in dubai for around 4 years I never paid any income tax (yes- they have resources like oil etc but even our country has many resources), my questions is can a democratic government run without tax?

Well, it'll be very hard to do so. If all Direct & INdirect taxes are abolished, then either there should be enough resources for export or the government should earn huge dividends on investments made in other countries. But this second option is available only if your coffers are full.

Best Regards,
--Ashish

sudhir gupta · #14 17th December 2006, 04:49 PM

the contrast is really stark.

if i delay even a one rupee of tax payment, especially central excise, i can go to jail

but

nobody goes to jail even if they put a 350 crore rocket into sea !

a gurgaon delhi expressway-partly connecting airport of largest democracy on earth to its capital, can't be built in 5 years..

and

they plan a "chandrayan"- to send an indian to moon.

Income Tax-publicity line .. " Taxes are paid-Nations are made"

yes- nation means only "babus, police officials and netas". All others are despicable "private sector".Any document/form attested by a babu (gazetted officer) is gospel truth !

We, who pay taxes:

- are not sure that our children will get admission in professional courses.

- will have to pay enhanced home loan interest every 6 months so that RBI can control money supply to an "overheated real estate". Does my 'small two bed room box apartment' home loan has to bear the brunt of RBI's maneouvers to tackle machinations of Parsvnaths, Unitechs, Peninsulas, Omaxes.....? Yes, babus, netas and RBI governor don't care. Because they don't have to pay back a home loan. They are more concerned how to get allotted a more bigger bungalow in Luytons Delhi for themselves.

- will have to step aside for a red-beacon/siren blaring car of a "public servant" babu or neta paid for by our taxes.

- can be mowed down or killed by kins of likes of Nandas, Yadavs or Sharmas.

etc. etc.

i shudder to think what would have happened to IT and BPO if IAS babus were in control of this industry. Chandrashekhar had mortgaged even the gold of our country !

Sometimes I wonder if we are better off after "freedom" from British. I think we are not. IAS, Police and Netas are true beneficiaries of freedom.

Honest tax paying people would have been much much better under "British Raj" instead of today's "Democracy Raj of IAS, Police and Politicians" It is really a freedom for our ruling class from British. For, "aam aadmi" was even in British Raj ruled in similar manner by their civil service, expected same behaviour in police stations, govt. offices, utility services etc. as today.

Afterall, this is supported by fact that NRIs working under British, American or Arab "Raj" are much more better off than we resident indians with our 60 years of desi "freedom"

ashishv · #15 18th December 2006, 10:18 PM

Quote:

Originally Posted by sudhir gupta

the contrast is really stark.

if i delay even a one rupee of tax payment, especially central excise, i can go to jail

but

nobody goes to jail even if they put a 350 crore rocket into sea !

a gurgaon delhi expressway-partly connecting airport of largest democracy on earth to its capital, can't be built in 5 years..

and

they plan a "chandrayan"- to send an indian to moon.

Income Tax-publicity line .. " Taxes are paid-Nations are made"

yes- nation means only "babus, police officials and netas". All others are despicable "private sector".Any document/form attested by a babu (gazetted officer) is gospel truth !

We, who pay taxes:

- are not sure that our children will get admission in professional courses.

- will have to pay enhanced home loan interest every 6 months so that RBI can control money supply to an "overheated real estate". Does my 'small two bed room box apartment' home loan has to bear the brunt of RBI's maneouvers to tackle machinations of Parsvnaths, Unitechs, Peninsulas, Omaxes.....? Yes, babus, netas and RBI governor don't care. Because they don't have to pay back a home loan. They are more concerned how to get allotted a more bigger bungalow in Luytons Delhi for themselves.

- will have to step aside for a red-beacon/siren blaring car of a "public servant" babu or neta paid for by our taxes.

- can be mowed down or killed by kins of likes of Nandas, Yadavs or Sharmas.

etc. etc.

i shudder to think what would have happened to IT and BPO if IAS babus were in control of this industry. Chandrashekhar had mortgaged even the gold of our country !

Sometimes I wonder if we are better off after "freedom" from British. I think we are not. IAS, Police and Netas are true beneficiaries of freedom.

Honest tax paying people would have been much much better under "British Raj" instead of today's "Democracy Raj of IAS, Police and Politicians" It is really a freedom for our ruling class from British. For, "aam aadmi" was even in British Raj ruled in similar manner by their civil service, expected same behaviour in police stations, govt. offices, utility services etc. as today.

Afterall, this is supported by fact that NRIs working under British, American or Arab "Raj" are much more better off than we resident indians with our 60 years of desi "freedom"

I strongly agree to some points but would strongly disagree to being under British Raj.
Why should a handy bunch of white foreigners rule a country that is 1000 times bigger than theirs.
Also the British were the first to be free from King/ Queen rule why didnt they apply this to India. The fact is they were here to exploit us and take all good things away to UK.

sudhir gupta · #16 19th December 2006, 05:18 PM

{I strongly agree to some points but would strongly disagree to being under British Raj.
Why should a handy bunch of white foreigners rule a country that is 1000 times bigger than theirs.
Also the British were the first to be free from King/ Queen rule why didn’t they apply this to India. The fact is they were here to exploit us and take all good things away to UK.}

Thanks for you response.

My case is not that India would have been better under British Raj. I just want to opine that perhaps our bureaucrats (IAS fraternity) and netas would have produced better results if we had British Governors.

As far as exploitation by British is put objectively, I fail to fathom what an average member of general public was having at that time to be exploited off. Young people just have to see Mother India and Do Bigha Zameen films to know the real situation of an Indian at that time. If general public was so rich as to be exploited of its riches at that time, what was the need of a Charkha - spinning wheel ?

British took away diamonds, jewelry from Rajas, Maharajas, Kings. As far as minerals are concerned, we still export premium ores to Japan, China and Australia and import capital goods. What else did they exploite ?

Compare this to the money stashed away in Swiss banks and elsewhere by politician and bureaucrats of free Asia and Africa. At least British ‘exploited’ without shedding crocodile’s tears.

In return what British gave us : Railways, Roads, Administration, freedom from Maharajas, Hospitals, Census, Bridges, Parliament, Geological survey of India….etc. etc. and ENGLISH – which is Achilles Heel of any Indian in West - IT, BPO, engineers and doctors working as NRI and sending back billions of dollars earned from demeaning exploitative handy bunch of white foreigners.

Although British built hill-stations for themselves, but can you think of any new hill station since British Raj where our young can go for honeymoon? Our politicians have even made Kashmir inaccessible for a whole generation ! A whole generation.

Now I don’t care what Pakistan does. I pay taxes. It is Govt.’s job to tackle Pakistan, but they fail and then come and cry over tax-paying public’s shoulder howling presence of terrorist camps, trade-imbalances etc.. Govt. has all organs of power : Military, Intelligence, RAW(whose budget even parliament is forbidden to know), a competent Diplomatic Corp., Nuclear Deterrent. Still they fail.

Can we cry on Govt.’s shoulder how difficult and laboriously we earn money to pay taxes?

And, yes, I am amazed to see our young graduates of IIT’s and IIM’s eager to serve in multinationals run by ‘a handy bunch of white foreigners’ compared to desi multinationals – Videocons, Ranbaxys, Ciplas etc.

With regards.

ashishv · #17 19th December 2006, 06:12 PM

Quote:

Originally Posted by sudhir gupta

[color="Gray"]{

Now I don’t care what Pakistan does. I pay taxes. It is Govt.’s job to tackle Pakistan, but they fail and then come and cry over tax-paying public’s shoulder howling presence of terrorist camps, trade-imbalances etc.. Govt. has all organs of power : Military, Intelligence, RAW(whose budget even parliament is forbidden to know), a competent Diplomatic Corp., Nuclear Deterrent. Still they fail.

Can we cry on Govt.’s shoulder how difficult and laboriously we earn money to pay taxes?

And, yes, I am amazed to see our young graduates of IIT’s and IIM’s eager to serve in multinationals run by ‘a handy bunch of white foreigners’ compared to desi multinationals – Videocons, Ranbaxys, Ciplas etc.

With regards.

Like you pointed out " I don’t care what Pakistan does ". I think the biggest problem is the one you don't care about. Infact we are pouring so many thosuand crores in defence that if divided amongst the people of India would bring many above the poverty line.
Also defense is the biggest expenditure to our exchequer. The Britishers strategy of "Divide and Rule" helped to create Pakistan. Imagine cutting the defense expenditure out of the budget And your TAX will be down to 10%.

IIT IIM grads join MNC's only beacuse they pay HUGE salaries. Those huge salaries benefit India as they are amongst the highest tax payers for India.

aca_trader · #18 19th December 2006, 10:20 PM

Quote:

Originally Posted by sudhir gupta

As far as exploitation by British is put objectively, I fail to fathom what an average member of general public was having at that time to be exploited off. Young people just have to see Mother India and Do Bigha Zameen films to know the real situation of an Indian at that time. If general public was so rich as to be exploited of its riches at that time, what was the need of a Charkha - spinning wheel ?

It's suggested to have a reading of "Poverty & Unbritish Rule of India" for a proper understanding of how India and Indians were exploited. We have to understand and take into account the periods of 1757-1905 AD which broke the backbone of Indian economy.
Further, if movies were to be used for historical knowledge purposes, perhaps after 50 yrs. from today, the people will say that in 2006 India had technological advanced thiefs who could melt a manhole within seconds and come out of the other manhole with the thrust of a rocket. (Courtsey Dhoom-2).

Best Regards,
--Ashish

sudhir gupta · #19 20th December 2006, 01:11 PM

instead of referring members to find and read a book, can we have benefit of knowing specific points of your learned viewpoint as to what exactly a wealthy indian in a booming indian economy in 1757-1905 AD was robbed off by british ?

If we compare Bimal Roy and other national award winnning classics with Doom2, then same can be extrapolated to books too.

aca_trader · #20 21st December 2006, 12:45 AM

Quote:

Originally Posted by sudhir gupta

instead of referring members to find and read a book, can we have benefit of knowing specific points of your learned viewpoint as to what exactly a wealthy indian in a booming indian economy in 1757-1905 AD was robbed off by british ?

If we compare Bimal Roy and other national award winnning classics with Doom2, then same can be extrapolated to books too.

Well, I am not intelligent enuff to comprehend a book regarded as classic in Indian Economy in a few words, please pardon me on that count.

Further, you are ryt about extrapolation but the book I did refer to will end in the class you are putting Bimal roy among filmmakers.

Best Regards,
--Ashish

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