Similarities between Income Tax Collection and IPL advertisements.

I was observing the advertisements during the telecast in the current IPL season. The players were looking like outdoor hoardings! Their cap had four different advertisements; on the front, back and both sides; then each shoulder had two ads; the back and stomach had two, and the two legs had two ads each! Their shoes, bat, and gloves were also not spared!

Further, the stadium and inside the field were filled with promotional materials, both fixed, and LED. To add more, they screened (beamed on the field) ads at times.

Usually, ads were streamed after each over; but if the bowler took 30 seconds extra to rub the ball, one ad was inserted into TV Live!

When the game was going on, the screen size was reduced and ads were run on L shape space made! Even the cameras had advertisements!

The scorecard was one of the easy targets! Each 4 or 6 or even a duck was sponsored by a company! The 50s and 100s were big deals for ad makers.

More than the match, I was keenly observing how the ads are done in the recent matches when compared to the past 5-day match where we used to see only white everywhere and white dressed players and nothing else! Appreciate the changing times and creativity!

Tax Collection – Now let us look at the tax collection. If Aadhar is not linked to PAN, pay Rs.1000; If the return is not filed within the due date, pay Rs.5000, if you delay paying advance tax pay 1% of tax, if you pay taxes after 1 year, pay 25% extra tax, if you pay after 2 years, pay 50% extra tax.

If you don’t file an eTDS return, pay Rs.200 per day; if you don’t file Form 10BD, pay Rs.200 per day.

If you don’t file SFT (financial statements), pay Rs.500 per day. If you don’t respond to the notice, pay Rs.10,000; if you don’t maintain the books pay Rs.25,000; if you don’t get the auditing done pay Rs.1,50,000. If you wrongly report or don’t report pay up to 200% of your taxes.

If you sell the property, deduct tax, if you rent the property pay TDS, if you remit the money outside of India, pay TCS; if you travel abroad, collect TCS; buy jewellery or a vehicle, collect TCS.

What am I trying to say here?

Innovative! All I am saying is how both IPL and the Tax Department have optimized the revenue collection. On a positive note, I am amused and thrilled by the way they have creatively augmented the revenue by seizing every possible opportunity. No stone is left unturned when it comes to the collection of revenue.

Every nook and corner of the field is used to increase the revenue base.

Having mentioned the similarity, if I don’t write about the difference, it will be unfair.

In IPL they have used everyone and everything like the players, umpires, coach, on and off-field, inside the stadium, outside the stadium; whatever, wherever, whenever they can to add additional revenue; basically, a borderless effort!

Sadly, in the case of Tax revenue, only those who pay the taxes are targeted. Learning from IPL, I am sure the tax department will extend reaching outside their core taxpayers.

If I compare the taxpayer to the player, like ads, taxes are pasted on every possible part of the body! No more spots are available to place more ads/taxes on ‘taxplayers’!

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About B E Kumar Prasad

B E Kumar Prasad
He is a Practicing Chartered Accountant in Bengaluru, India. He has 25+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional and Registered Valuer (F&SA).Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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