Telangana, Andhra top tax defaulting states

Andhra Pradesh and Telangana are the top two tax defaulting states in the country. According to a data released by the Central Board of Direct Taxes, 30 of the 96 I-T defaulting companies or individuals across the country belong to the Telugu states- 5 from AP and 25 from TS. These firms have defaulted on payment of Rs 1,046 crore altogether. 

Following this, the CBDT has directed officials to induce arrests, detention and auctioning of attached assets of wilfull income tax defaulters. Section 276 C (2) of the I-T Act, wilful income tax defaulters will attract rigorous imprisonment between 3 months to 3 years, which is accompanied by a fine. The income tax department has a separate machinery- the TRO or the Tax Recovery Officer- which is being strengthened by providing additional infrastructure and manpower. These officers are required to oversee that the defaulters pay up the tax or the required fine. 

The TROs work is also being monitored, especially in the area of attachment and sale of property. The TROs should ensure that the attached properties are sold within a year. The role of the TRO comes at the fag end of a tax evasion case, when the demand raised by the department gets converted into wilful default. The TRO, however, can use his power of detention and arrest when there is a chronic default. 

• tax defaulters in india
• tax laws in india