Phone tapping powers still with CBDT: Chandra

The Central Board of Direct Taxes (CBDT) today said the powers of phone tapping of suspected tax defaulters continued to remain with the Income-Tax department.

“Power of interception stays with CBDT. The circumstances in which those powers were given to us, there is no change in background of those,” CBDT’s outgoing Chairman Sudhir Chandra told reporters today.

This assumes significance as CBDT’s role in tapping phone of corporate lobbyist Niira Radia in connection with 2G spectrum auction case was questioned. A committee of secretaries looking into the leak of Radia tapes had suggested taking CBDT off the list of agencies authorised to tap phones.

Asked about the refund drive started by CBDT, Chandra said the department had already given refunds to the tune of Rs 30,000 crore in the current financial year so far and would give another Rs 70,000 to Rs 5,000 crore during the rest of the year, taking the total to over Rs 1,00,000 crore this year.

A higher refund outgo would mean CBDT would have to collect gross taxes of about Rs 6,37,000 crore this year to meet its net direct tax collection target of Rs 5,32,000 crore.

Chandra said the target would be met, though a slower-than-expected growth could pose some challenges. He added timely payment of refunds would bring down the burden on the tax department next year.

“If we clear all refunds this year, then from next year the refunds will be in the range of Rs 60,000-70,000 crore,” he said.

Asked about yoga guru Baba Ramdev’s statement to go on hunger strike over the issue of black money, Chandra said the department was ready to consider his suggestions.

“Ramdev's suggestions were constructive and constructive ideas should be considered by the government,” he said.

Ramdev has threatened to go on hunger strike on the issue of black money and corruption from June 4.