Vijay L. Kelkar Committee On Fiscal Consolidation: Presented By:-Ankush Singh Bagal
Vijay L. Kelkar Committee On Fiscal Consolidation: Presented By:-Ankush Singh Bagal
Intoduction
Finance minister constituted a 3 member committee
The
objective
of
committee
was
to
give
fiscal consolidation.
employment opportunities.
According to report as a result of reduced corporate profits, weaker industrial
output and decreasing imports , the committee predicts a shortfall in tax
There are two types of taxes: Direct and Indirect. Kelkar committee has
given recommendations to increase the collection of both Direct and
indirect taxes, in following manner.
Data Mining
Since 2004, the Income Tax Department has been electronically obtaining a
large volume of information from third-parties through the Tax Information
Network (TIN).
But there is a growing perception that the Income Tax Department is unable to
harness this large volume of information, because it lacks data mining skills.
Therefore Taxpayers have found new methods and avenues for parking their
Thats why Income tax department should provide training in data-mining for
all directly recruited inspectors and Assistant Commissioners, with the help of
Big IT companies.
PAN card is issued by the Income Tax Department. It does not change with
changes in address or place.
Report says amend the laws so that Irrespective of amount of money transected,
PAN / UID number must be quoted in bank accounts, fixed deposits with banks,
all salary payments and sale of immoveable property.
This will also help detecting tax frauds and reduce black money.
For example:
Non-profit organizations should pay Service Tax.
Government had given exemption to the Railways from service tax
payment for transportation of goods and passengers (of higher class)
upto 30.09.2012
Committee recommends that the Railways should no longer be exempted
from service tax after that date.
produced in India.
For example
6% on LED Lamps.
IF all kids are given policy vaccine by Government, then then Indias
future workforce will be healthier and fitter =third party (Industries) will
also benefit.
Disinvestment (in crude terms) = when Government sells its shares from a
PSU.
But report has different views about what to do with this money! He says, The
money thus collected, through the disinvestment process should be deployed
in infrastructure= growth and employment.
Using this money, Government could move into the sectors where private
Reduce Subsidies
affordable.
The committee views the subsidy on diesel as a major
contributor to Indias fiscal deterioration.
provided.
schemes /