Why it pays to pay your income tax

Idea is to widen tax base; target to add 12.5 mn in FY18

The income tax (I-T) department has proposed monetary rewards for honest taxpayers depending on the tax paid. According to the proposal, the reward will be for taxpayers who are consistent in filing returns and have no outstanding tax liabilities. However, if a taxpayer defaults in the future, the tax department will deduct the amount from his refund with interest.

The quantum of the reward will depend on the amount of tax paid and the slab a taxpayer falls under. Sources said the reward could vary between one per cent and five per cent of the total tax paid. The reward