TAX DEPARTMENT TO KEEP A CLOSE WATCH ON RESEARCH BODIES

The income tax department is putting research institutions under the scanner to check misuse of tax benefits, RS Mathoda, member of the Central Board of Direct Taxes, said on Monday.“I would like to make the institutions more accountable,” Mathoda said. Institutions involved in scientific research would be the first targets and there is no plan now to scan the educational institutions, he said on the sidelines of a seminar at the Bengal National Chamber of Commerce & Industry.“There is certain attempt to check” the institutions doing scientific research, he added. These institutions are given tax exemptions to the tune of 120% of the amount spent on research. According to department officials, there are cases where tax exemption given towards research facility is misused and the department wants to tighten its fist.The income tax department is continuing the process of computerisation and centralisation of its database. The department has taken IBM and telephony major Airtel as partners in the project.“Implementation of IT is slow, but it is moving. We hope to upload tax data on the central database from next January-February," he said. Direct tax collections grew by over 40% during the period from April 1 to December 15, 2007 as compared to the same period of the previous year.Net collections added up to Rs 1,64,407 crore, up from Rs 1,15,377 crore during the same period last fiscal.The department is sending junior officers overseas to let them learn the systems prevailing in other countries – www.financialexpress.com