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Old 24th May 2016, 12:39   #16
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Default Re: Income Tax Department procures customer data from luxury car dealerships

While a good Idea, I dont see it making any significant impact on direct tax collections/reduction of black money. The significant part of black money comes from parallel economy. And its quite easy to evade tax while still managing to increase your revenue. retail shop owners, small hotel owners, doctors, lawyers, tutors/coaching institutes and other service providers hardly pay any tax, while earning handsomely. They reduce the visibility of their wealth also, to minimize IT officials' gaze. Many are involved in a parallel banking system, giving away cash loans against property/gold etc, earning handsome interest too. They purchase all items of significant value through credit cards, convert it to EMI and then repay in cash at bank counters. All shopping is done in cash, all luxury spends are done invariably in cash.

In big cities, the income from rent alone can land a large no of owners into tax bracket, if they disclose it. People run small businesses from home (crèches, day care centres, paying guest houses, catering services, property services etc) apart from their regular (and disclosed) business/job and never disclose anything about it. And these all parallel businesses feed with each other, almost never needing to go to formal banking system. And usually, these tax evaders don't own expensive luxury cars like lambos and royces.

Last edited by GTO : 25th May 2016 at 11:15. Reason: Typos
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Old 24th May 2016, 14:52   #17
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Default Re: Income Tax Department procures customer data from luxury car dealerships

As far as I understand, Govt is not going to make anything out of the customer data from luxury car brands. Most of my friends who can afford to drive one are business owners who are paying taxes and maintain their accounting and auditing on time. Other category whom I don't know are kids of politicians or builders etc. Even if they drill through the sources, it may end up halfway or get into an endless tunnel of blockages. If we had a system thats efficient, half of this country's funds would have been utilised in the right mode.

If I ever get a chance to give an opinion to the IT gang, I would request them to scrutinise the self labelled 'middle class' with multiple businesses. I have more than half a dozen families within my society who own more than 4 cars, as equal as the number of members in each family. I don't know what system exists to track multiple purchases under different names but from the same family !

I am about to get my 7th car in India. So far owned 2 sedans and 4 hatches. 3 cars were taken from the showrooms with full cash payment. Even if I take a finance, it would be to facilitate the taxation documents. But I always owned only 1 vehicle at a time ! What about people who have 4 or more under the same house ? Not daring to think about 3 to 4 luxury cars in one house. There are plenty in Bangalore even in my neighbourhood !

Last edited by shajufx : 24th May 2016 at 14:54.
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Old 24th May 2016, 16:11   #18
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Default Re: Income Tax Department procures customer data from luxury car dealerships

@phamilyman - I don't understand why your targeting doctors, what about lawyers, IT professional , politicians, media and cinema stars. You didn't mention a word about them. So do you mean to say they are clean and only doctors make black money?
Such generalisations are unwarranted and deviate from core topic.
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Old 24th May 2016, 16:37   #19
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Default Re: Income Tax Department procures customer data from luxury car dealerships

About time & this should be brought down to anyone buying a car maybe 20-25L (10L is better but they may not have the resources to track all of them). There are scores of property dealers who roam around in Safaris/Scorpios but I doubt any of them pay even 10% of the tax I pay every year. My blood boils when I hear that only about 1% of the total population of India pays tax. It's like I am being ripped off & there's nothing I can do about it, legally.
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Old 24th May 2016, 17:04   #20
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Default Re: Income Tax Department procures customer data from luxury car dealerships

I recently read that the income tax authorities are trawling FB pages to check for foreign jaunts. If I declare my annual income at a minimal level, yet upload a photo of me standing underneath the statue of liberty with a big grin, I can get a call from the tax men!
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Old 24th May 2016, 17:39   #21
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Default Re: Income Tax Department procures customer data from luxury car dealerships

I would say, tracking people with arms license (possessing guns, pistols etc) will give better returns. After all, those who earn disproportionately, are usually the ones who are fearful of their life. Or, many of these are actually looters!!
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Old 24th May 2016, 18:06   #22
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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Originally Posted by Gansan View Post
.. If I declare my annual income at a minimal level, yet upload a photo of me standing underneath the statue of liberty with a big grin, I can get a call from the tax men!
Its an underestimated way of having a big catch every hour ! Almost 90% of the general FB users keep checking into airports and luxury hotels on a daily basis. Most of them prefer to tell the world what they drive, what they eat and where they spend time

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Originally Posted by Nav-i-gator View Post
I would say, tracking people with arms license (possessing guns, pistols etc) will give better returns. After all, those who earn disproportionately, are usually the ones who are fearful of their life. Or, many of these are actually looters!!
I am never going to apply for a license
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Old 24th May 2016, 19:57   #23
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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Originally Posted by GTO View Post
Well, we've certainly come a long way. 3 decades back, whoever bought a Maruti 1000 was sure to receive a friendly call from the IT department.

Now, it's Lamborghinis .
Phew!!! Bachh gaya. 30 years ago I couldn't afford a Maruti 1000 and today I cant afford a Lamborghini. But my paan wala....I think he has cause for worry now

Viewing it from a national point of view it is the right thing to do.
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Old 24th May 2016, 20:38   #24
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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My blood boils when I hear that only about 1% of the total population of India pays tax. It's like I am being ripped off & there's nothing I can do about it, legally.
The figure is about 3%, and it's "direct tax", not tax in general. Everyone pays indirect taxes in some way or the other like entertainment tax, sales tax, customs etc.

The figure of 3% is expected since only about 10% of India is in the organized sector. The tax slabs keep a significant portion of that 10% out of direct tax bracket. And it is very difficult to expand the direct tax base among the unorganized sector as income declaration is not as flawless as the organized sector.
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Old 24th May 2016, 21:49   #25
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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The figure is about 3%, and it's "direct tax", not tax in general. Everyone pays indirect taxes in some way or the other like entertainment tax, sales tax, customs etc.
Yes, thanks. I too meant direct tax in form of income tax. But latest figures suggest 1% http://www.ndtv.com/india-news/only-...t-data-1401462
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Old 24th May 2016, 22:17   #26
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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Originally Posted by sunishsamuel View Post
I read this article few days back.
http://www.rediff.com/business/colum...s/20160520.htm
While i do not want to generalize, i'd not be surprised if tax collection is low. We donate wealth to religious institutions, but do not like paying tax. Wouldn't latter be more important than former? Some of the so called "leaders" prefer exemption at the toll booth even though they own a mercedes benz. Why such mentality. Is it because we are so fed up with the tax regime/structure/use of tax funds that we do not want to pay tax ?
Or save every penny possible to be rich even when we know that our life span in this world is limited ? I am not able to understand.
Wonderful sentiment & I agree in toto! None of us wants to look beyond our noses - "Na hathi hai na ghoda hai, wahan paidal hi jana hai".
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Old 25th May 2016, 01:52   #27
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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My blood boils when I hear that only about 1% of the total population of India pays tax. It's like I am being ripped off & there's nothing I can do about it, legally.
I agree completely - we're paying for everyone else...

But I simply cannot believe that they are able to give those massive pay increments to government servants based on our 1% of taxes paid. As others mentioned, must be coming out of the other taxes...
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Old 25th May 2016, 17:05   #28
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Default Re: Income Tax Department procures customer data from luxury car dealerships

I remember my Mom saying that my paternal grand father got a call/notice when he bought a couple of MMXXX jeeps with cash down just before my mom and dad got married. (in the late eighties btw). Dont know how much they might have costed back then though.

Slightly OT, Here I am now struggling to save up the 8-9L sum for a down payment of a decent car. (I hate EMIs and made a point to avoid them unless its a home loan). Though I am nearly there with just a couple more of big ones needed, made me realize how times change eh !
No one cares for 10 big ones anymore

Last edited by vamsi2390 : 25th May 2016 at 17:06.
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Old 25th May 2016, 17:17   #29
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Default Re: Income Tax Department procures customer data from luxury car dealerships

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Originally Posted by Gansan View Post
I recently read that the income tax authorities are trawling FB pages to check for foreign jaunts. If I declare my annual income at a minimal level, yet upload a photo of me standing underneath the statue of liberty with a big grin, I can get a call from the tax men!

Sending notice to the buyers of costly car owners, lifting information from the FB pages etc. is nothing but pick and choose method to cause fear in the public and demand 'RESPECT'.

even small pan walas, kabab prantha seller earns more than a senior bureaucrat or a software engineer. This fact is known to everybody but in many cases, the IT notices are issued on plain whims.

Senior IT authorities will serve the public purpose by streamlining the 'business' of notices.
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Old 25th May 2016, 18:35   #30
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Default Re: Income Tax Department procures customer data from luxury car dealerships

I wish I had one of these luxury cars (or the money) for them to chase me, being chased for a ridiculous TSD'd amount since 2010 that even the dept acknowledges having received

PS : Smart IT officials if you are reading this, spare me!!
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