Chidambaram: Front-runner

Chennai, Oct. 31: Finance minister P. Chidambaram today filed his income-tax returns at the I-T office here instead of asking his chartered accountant to do so.

?This helps me send a message across to a large audience that paying tax is a matter of pride and honour,? Chidambaram told reporters after filing his returns around 11 am.

Today was the last day for filing of returns in this financial year. Chidambaram chose this date as he could not reach the city earlier for a date with the taxman.

Chidambaram said those not filing their returns would be scrutinised by the department. He said there are over 1.70 lakh people in the country who have deposits of Rs 10 lakh and more in various banks and over three lakh people who have investments of over Rs 2 lakh in mutual funds.

?I am happy that you are prosperous. But, you should also file the returns,? he added.

On banks proposing to make home loans dearer, Chidambaram said he cannot tell banks what the ?appropriate interest rate? was. ?It was for them to decide.?

The half-yearly review meeting of all PSU banks in Delhi is scheduled for November 18. ?The situation will be discussed at the meeting?, he added.

On some foreign institutional investors (FII) pulling out their portfolio investments from the capital market, Chidambaram said that should be no cause for worry as there were ?lots of other FIIs? keen to come to India.

?Inflows and outflows are part of the capital market. A large amount of money from Tokyo, Singapore, Hong Kong and West Asia is waiting to enter India.

Replying to a question on high volatility in the markets due to the FII outflows, the finance minister said: ?Orderly movement is what we are looking at.?

Chidambaram also expressed the confidence the direct tax collections as a percentage of GDP would cross 5 per cent at the end of this financial year, in line with the budget forecast. ?Last year, the direct tax to GDP ratio stood at 4 per cent,? he added.

The finance minister said a combination of factors such as economic growth, better corporate results, higher salaries, more information about the tax assessees, tighter administration and annual information report have contributed to this optimism.