Bangalore: Union Minister of State for Finance S.S. Palanimanickam said here on Monday that direct tax collection had increased by 35 per cent, reaching Rs. 69,700 crore, up to September 15, compared to the corresponding period last fiscal.

Speaking to presspersons, he said the proposal to recruit around 7,000 more personnel for the Income Tax Department had been approved by the Union Cabinet and the process would begin soon and be completed by early next year.

"There has been a healthy trend of more voluntary compliance in paying taxes during the past three years and those who still evade taxes may now be more afraid of penalties to be paid. Even after six years we can reopen cases and demand penalty payments," he said.

Plaque unveiled

Earlier after unveiling the plaque of the foundation stone for the Direct Taxes Regional Training Institute at Jalahalli here, he said comparisons with the other countries showed India employed among the lowest in terms of manpower to collect taxes while tax collection was steadily going up.

"We need to provide the Income Tax Department more people and infrastructure and this will be taken up with my senior, Finance Minister P. Chidambaram.

Though there is an existing training centre in Chennai, it is good Bangalore is getting one too. The assurance of Chief Engineer of Central Public Works Department S. Chinnaswamy that the buildings will be competed in 18 months, ahead of the scheduled 24 months is gratifying. As for the delay in getting the proposal cleared in Delhi, I can say I have not kept the files pending," he said.

Chief Commissioner of Income Tax, Bangalore, Manju Madhavan said land from Hindustan Machine Tools was acquired in 1998, plans for the regional training centre finalised at end of that year and all issues raised by Delhi were clarified by 1999. But the final approval came only in February 2006. Saroj Bala, Director-General, National Academy of Direct Taxes, Nagpur, said comparisons with other countries showed each tax official in India had to deal with 17,846 tax payers while it was 810 in the United Kingdom and 2,974 in the U.S. The total sanctioned strength of income tax employees in India was 59,682 while the United Kingdom had 73,863, Ms. Saroj Bala said.

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