GOVT MOVES TO STOP EVASION OF TAXES, LITIGATION
In a move to further simplify the tax system, promote voluntary compliance by taxpayers, and reduce litigation, the government has proposed some measures to deter tax evasion and cut litigation as well. In order to increase deterrence among tax evaders, the government also proposed to provide no set off, of losses, against undisclosed income detected during search operations by the tax department.
At present, if the tax department finds out that some income has been missed out by the assessee, it goes through a lengthy process of adjudication. The proposed change reposes trust in the taxpayer that will enable the assessee to declare the income that may have missed out earlier while filing her return.