Increased focus needs to be placed on increasing government spending on infrastructure. As far as the income tax is concerned, lots of fundamental changes are expected from the Finance Minister. I will state here some of the anomalies in the tax system which need immediate corrections. The Voluntary Disclosure of Income Scheme has proved beyond doubt that it was the inefficiency of the previous governments which had resulted in such vast accumulation of unaccounted money. There are many transactions where the dark coloured money keeps growing.
Real estate is one area where the largest chunk of black money is created.
Lot of black money is generated because many units suppress turnover in order to remain within the exempt limits under Central Excise Law. All these factors are extraneous to the IT dept. File, smile and go', which the Government has always promised, is what is required. Efforts are required on the part of the Government to convince the tax payers that the Income Tax Department exists for service to society, and not as an instrument of harassment. This change in attitude is imperative to bring people closer to tax- compliances.