E-payment may become mandatory for corporate taxpayers from next year. With the success of e-filing, the government now wants corporates assessees to pay income tax through e-mode.
“A proposal in this regard is under active consideration of the Central Board of Direct Taxes,” an official said. E-payment could become mandatory from January 1, 2008. After a final decision on the date, a notification in this respect may be issued by the board.
Although the option of paying income tax through e-mode exists, it has not been made mandatory for any assessee category.
“Most corporates are already on e-payment, it’s banks that have to gear up to provide the infrastructure. In remote areas, however, the government should make it optional or take the step in a phased manner,” says Ernst & Young partner Amitabh Singh.
However, total collection through e-payment continues to remain low. In 2006-07, tax collection through e-payment was less than 1% of the tax collection of Rs 1,300 crore.
Although initially the proposal is to make e-payment mandatory for corporate assessees only, the government may look at doing the same for some other categories as well, the official said.
The government has made electronic payment of service tax mandatory for assessees who paid service tax of Rs 50 lakh or above last year. Similarly, excise assessees making payment in excess of Rs 50 lakh also have to pay by e-mode from April 1 this fiscal.
The e-filing of tax returns was mandatory last year, which, after initial hiccups, has stabilised.
At present, eight of the 32 agency banks, nominated to collect taxes — State Bank of India, Axis Bank, Punjab National Bank, Indian Overseas Bank, Canara Bank, HDFC Bank, IDBI Bank and Union Bank of India — already offer the facility. Fifteen other banks are likely to introduce the facility while two have expressed inability to do so. |
