Government has started matching information with data from third-party sources for direct taxes

Revenue secretary Tarun Bajaj says the government has started matching information with data from third-party sources for direct taxes. Revenue secretary said the tax base has to widen before Centre can lower personal income tax rates.

The Union government has managed to increase revenue by encouraging taxpayers to file updated tax returns where the income tax department has intelligence about unreported income, revenue secretary Tarun Bajaj said, adding efforts to widen India’s tax base will continue. In an interview, Bajaj said that given the comparatively low tax-to-GDP ratio in India (10.7% as per the FY23 Union budget estimate), the tax base has to continue widening before the government could think of lowering personal income tax rates.

Bajaj also said voting is not the only option to decide on the vexed issue of taxation of online gaming, horse racing and casinos as consensus may be possible. The GST Council will meet next on 17 December.

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