Panel For Tax On Cash Withdrawal Beyond Limit To Curb Black Money
"Alternatively, BCTT should be reinstated as an effective administrative measure".
BCTT was introduced in June 2005 to track unaccounted money and trace its source and destination, but was withdrawn in April 2009.
BCTT was levied in respect of cash withdrawals in a day exceeding Rs 50,000 in the case of an individual and Rs 1 lakh in the case of other persons.
The report further said large farmers should be brought into the tax net.
"Against a tax free limit of Rs 5 lakhs on agricultural income, farmers having income above much higher threshold income, such as Rs 50 lakh, could be taxed. This will broaden the taxpayer base," it said.
Talking about other steps to widen tax net, it said a conducive environment and tax culture should be created to encourage unorganised retailers to pay tax dues voluntarily.
The panel also recommended that wealth tax base can be increased by including intangible financial assets in the base while considerably raising the threshold and decreasing the wealth tax rate.
There has been increase in the number of non-corporate taxpayers for the categories Rs 2-5 lakh and Rs 5-10 lakh over the period 2007-12 but only a moderate fluctuation in the category below Rs 2 lakh over the same period.
Only 33 per cent of registered persons under service tax filed returns in 2012-13 and the number fell short of the previous year's figure by approximately 1 lakh. Also, more than 50 per cent of registered central excise taxpayers are not filing returns.
It also pitched for tax administration measures to improve SMEs tax compliance.
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