NEW DELHI: Direct tax collections rose at a robust clip of 14.4 per cent during the April to November period of the current financial year. Net direct tax collections stand at Rs 4.8 lakh crore during the period.
However, the growth in collections is lower than the required rate, according to a missive sent by CBDT Chairman Sushil Chandra just days ago to Principal Commissioners of Income tax. According to the statement released by the CBDT on Saturday, collected direct taxes during the first eight months of the current fiscal year account for little under half of the budgetary estimate for direct taxes for the entire fiscal year 2017-18.
“The provisional figures of Direct Tax collections up to November, 2017 show that net collections are at Rs 4.8 lakh crore, which is 14.4 per cent higher than the net collections for the corresponding period of last year,” Central Board of Direct Taxes said in its statement, adding, “the net direct tax collections represent 49 per cent of the total Budget Estimates of direct taxes for 2017-18 (Rs 9.8 lakh crore).” However, gross collections without accounting for refunds disbursed grew at a much slower clip. “Gross collections have increased by 10.7 per cent to Rs 5.82 lakh crore during April to November,2017. And, refunds amounting to Rs 1.02 lakh crore have been issued during the period,” CBDT said.
Just days earlier, Chandra had asked income tax departments of various States to ramp up collections, pointing out that the required growth rate for net collections needed to be 15.3 per cent. Chandra had also stated that it was evident that sufficient efforts have not been made in the area of maximising revenue generation in some regions.
One area hampering growth in collections is the below-par collection of tax arrears, with Chandra pointing out in his missive that the department had recovered only 25 per cent of the annual revenue collection from arrears of Rs 71,500 crore. The tax department has also achieved only 1.5 per cent of revenue demand raised against the overall target of 20 per cent.
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