‘Wealth creation needs to be encouraged, not seen with suspicion’: PM Modi

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Updated: Jun 15, 2020 20:18 IST

In his Independence Day speech on Thursday, Prime Minister Narendra Modi said that wealth creation is a great national service and it should not be seen with suspicion because wealth can be distributed only after it is created.

“Let us never see wealth creators with suspicion. Only when wealth is created, wealth will be distributed. Wealth creation is absolutely essential. Those who create wealth are India’s wealth and we respect them,” PM Modi said.

In his speech in Hindi, the Prime Minister said some wrong notions have gripped the nation with regard to wealth creators and such notions must be discarded. The country needs wealth creators and re-distribution of wealth to help the poor, he said.

PM Modi said wealth creation is a valued activity for the country and it should be encouraged. “Those who are engaged in creation of wealth; for me they are also wealth of our country. Their honour and pride will give new strength to this step,” he added.

Watch: PM Modi interacts with children after Independence day speech

The remarks that recognised the importance of industries in the nation building is seen as a signal to government departments that they should shun tax terrorism and stop creating bureaucratic hassles, consultants and industry experts said requesting anonymity.

They said that PM’s statement should help check overzealousness of tax authorities and investigative agencies.

An official in the revenue department said the government is making every effort to minimise troubles for both businessmen and citizens through digitisation and faceless interactions.

Income tax officials should build trust with the persons who pay tax, but they must use latest technology, do data mining, to catch tax evaders who “game” the system, finance minister Niramla Sitharaman had said last month.

According to the official quoted above, the FM has asked taxmen to be prompt in redressing grievances of the taxpayers and expand the tax base in a non-intrusive manner while striving to achieve the revenue targets.

A spokesperson of the Central Board of Direct Taxes (CBDT) said the government on Wednesday announced the usage of technology to generate summons and other communications through computers so that no individual tax official can misuse the system using discretion.

“In pursuance of the directions of the Hon’ble Prime Minister to come up with measures to ensure that the honest taxpayers are not harassed and served better, the Central Board of Direct Taxes has taken yet another step to ensure greater transparency and accountability in tax administration,” said a statement.

A documentation identification number (DIN) will be attached to each of tax communication -- notice, order, summon, letter and any other correspondence -- from October 1, 2019. “Any communication without a computer generated DIN would be treated as invalid and shall be deemed to have never been issued. All such communications would be verifiable on the e-filing portal,” it said.