Direct tax collections fall short of target by 15%, tax body raises alarm


New Delhi, Mar 29 (IANS): The CBDT has rung alarm bells and has asked the Income Tax Department to go for a major assault as the direct tax collection target remains short of about 15 per cent, with the financial year closing less than a week away.

On March 26, CBDT Member (Revenue) Neena Kumar shot off a letter to all the regional chiefs of the department stating that the tax collection figures have "been reviewed and it is seen that as against the budget collection target of Rs. 12,00,000 crore, only 85.1 per cent of the target at Rs. 10,21,251 crore has been collected as on March 23."

The officer, who is responsible to supervise I-T department''s tax collection work across the country, underlined the areas that are sluggish vis-a-vis direct tax collections obtained from personal, corporate and advance tax categories.

"The minor head-wise analysis indicates worsening trend of negative growth in regular collections at -6.9 per cent as against -5.2 per cent in the last week. This is an alarming situation which needs immediate attention," Ms Kumar wrote in the letter.

The officer expressed CBDT''s disappointment at this situation and has asked the supervisory tax officials to pull up their socks and ensure no stone remains unturned to achieve the target.

The Central Board of Direct Taxes (CBDT) frames policy for the I-T department and is also its controlling authority that functions from the North Block in the Finance Ministry.

"You are aware that regular assessment tax is bench-mark of performance as it is based upon quality of demand raised which can further be converted into actual collections," Ms Kumar wrote in the letter.

"Board (the CBDT) has discussed strategies through various communications with you (senior officials) and it was expected that by this time your strategies would have succeeded resulting into improved collections. However, the figures of collection give a different account," she added.

She asked the department to take "all possible actions urgently, especially with respect to recovery of arrear and current demand, so as to achieve the targets for collection."

The CBDT has been worried over the direct tax collection work for quite some time and Board Chairman P C Mody had recently held a video-conference with the top brass of the department across the country and discussed strategies to boost the collection figures to be achieved by the end of the 2018-19 fiscal on March 31.

Both Mr Mody and Ms Kumar are undertaking daily updates on the issue. They are monitoring advance tax and arrear collections, enforcement action to check tax evasion and subsequent surrender of undisclosed income, a senior official said.

  

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Comment on this article

  • Mangalurian, Mangaluru

    Fri, Mar 29 2019

    Reports in the international media have emerged that Adani's holding companies are in tax havens such as Mauritius. Look up in Google "The Adani Files" - an evidence-based site.

    Is the Board targeting such businessmen? I am sure that is not the case.

    Or is it the small fry, struggling to run a small business to feed their families.

    DisAgree [1] Agree [1] Reply Report Abuse

  • mohan, Mangalore

    Fri, Mar 29 2019

    Do people want more proof to prove that Modi ruuled BJP government is the worst government in Indian history...

    DisAgree [1] Agree [7] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Fri, Mar 29 2019

    BJP is the Worst Government in 72 Years.
    Do you need any more Proof ...

    DisAgree [1] Agree [14] Reply Report Abuse

  • Gujju loverz, Udupi

    Fri, Mar 29 2019

    Gujju and marwadi business ppl rarely pay any income tax only showing losses in their books

    DisAgree Agree [11] Reply Report Abuse

  • Valerian DSouza, Udupi/Mumbai

    Fri, Mar 29 2019

    Due to failure of demonetization, Complicated GST, instability of policies, GDP is down, employment is down, resultantly Tax collections also down.
    Frequent IT raids prove that demonetization didn't curb black money.
    Centre must be led by good economists and experienced in handling central Government.

    DisAgree [1] Agree [16] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Fri, Mar 29 2019

    We also hear that there is sluggishness in business, less money is business market. Hundreds of companies have defaulted in paying back capital and interest and I am a victim of 2 companies. Many companies of real estate have gone bankrupt. Hope, there will be revival after some time and people specially sick and senior citizens will get their money back and people who invested in apartments will get their apartments.

    DisAgree Agree [8] Reply Report Abuse


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