Reforms in I-T dept strengthening of economy led to record tax collections CBDT chairman
New Delhi Mar 19 PTI Reforms undertaken by the government within the Income Tax department and the strengthening of the Indian economy are among the major factors that led to the highest-ever direct tax collections in the country which stand at over Rs 1363 lakh crore CBDT Chairman J B Mohapatra has saidHe said apprehensions about the state of the economy battered by the COVID-19 spread were belied as it did so well and the corporates came out so well in paying taxes during the current financial year 2021-22Mohapatra exuded confidence that the direct tax mop up which primarily includes personal income tax and corporation tax revenue receipts will continue its present streak and the department will be able to successfully chase the target of collecting Rs 1420 lakh crore in taxes in the next fiscalIt will be very difficult to say how things will pan out the next year but there is no room to say that good times only last for four quarters Mohapatra told PTI in an interviewThe Central Board of Direct Taxes CBDT is the administrative body for the I-T department and according to its March 17 announcement direct tax collections as on March 16 in India broke all previous recordsThe CBDT chief listed the reasons that he believes led to the record collectionsFirst is the strengthening of the Indian economy The better the economy the better is the tax mop up which is happening right now Second reason will be the reforms undertaken across departments having an effect on the tax departments own collection numbers he saidThere are policy measures that have been taken over a period of time in the budget or outside the budget and are now giving the rebound effect or dividends Mohapatra saidThe third reason I would say will be the reforms within the department which have been continuous in the last four yearsProbably we have changed more than ever in the history of this department and these reforms take a while to gather steam and create results he saidMohapatra said after three-four years of working on the reforms both the taxpayer and the department are getting acquainted with the new processes and procedures and they are slowly bearing fruit So the point is that the reforms once triggered do not yield result right away but it takes time to sink in the mind consciousness and also in the operational culture of the department So now probably the time has come in which we are seeing the results of the reforms in the department he saidThe fourth factor Mohapatra said was small but important and is related to the technology induction in the I-T departmentFor example the annual information system AIS in which more and more information about the financial transactions they would have done in the year is now being delivered to the taxpayer This is taking them towards voluntary complianceOut of the over Rs 1363 lakh crore collection as on March 16 only about Rs 54000-55000 crore has come from regular assessment tax under which tax is paid by the assessee after department issues notice to themThe rest of the collection is coming by way of voluntary compliance This is happening because taxpayers are getting empowered with the financial information which is available to them he saidEarlier taxpayers used to struggle to get this information but now they have it at their fingertips the CBDT chief saidSo this has also helped the taxpayer to pay the right amount of taxes he saidMohapatra said that by the end of this fiscal on March 31 the net or actual tax collections after issuance of due refunds should settle upwards of Rs 135 lakh crore The I-T department was given a target to collect Rs 1108 lakh crore budget estimates this fiscal and it was later revised to Rs 1250 lakh croreMohapatra said collections under all heads have been the highest this time He gave a breakup to substantiate his pointThis year till March 16 the collection under the advance tax category was Rs 662 lakh crore which is 407 per cent more than 2020-21 506 per cent more than 2019-20 and 308 per cent more than 2018-19 he saidSimilarly the collection under the tax deducted at source TDS category stands at Rs 679 lakh crore which is 377 per cent more than 2020-21 405 per cent more than 2019-20 and 519 per cent more than 2018-19 he addedThe collection under the self assessment tax SAT category Mohapatra said stands at Rs 134318 crore which is 349 per cent higher than 2020-21 361 per cent higher than 2019-20 and 429 per cent more than 2018-19Under the regular tax category he said the collection is Rs 55238 crore — 465 per cent more than 2020-21 and 89 per cent more than 2019-20For STT securities transaction tax for shares category the government had set a target of Rs 12500 crore at the beginning of the year and in the revised estimates it was hiked to Rs 20000 crore the CBDT chief saidWe are more than Rs 22000 crore by March 16 So all components sub-components gross and net numbers are the highest thus far in the history of the departmentThese are very big numbers and this has come at the most opportune time in the history of the department he saidMohapatra said the department has not completed a sectoral analysis yet to be able to say how various sections of the economy faredSectors which did well will be those that are doing well in the current time like banking However we are yet to complete the sectoral analysis I will come back later to say which sectors have done well and which have not done well he said PTI NES DIV DIV
New Delhi Mar 19 PTI Reforms undertaken by the government within the Income Tax department and the strengthening of the Indian economy are among the major factors that led to the highest-ever direct tax collections in the country which stand at over Rs 1363 lakh crore CBDT Chairman J B Mohapatra has saidHe said apprehensions about the state of the economy battered by the COVID-19 spread were belied as it did so well and the corporates came out so well in paying taxes during the current financial year 2021-22Mohapatra exuded confidence that the direct tax mop up which primarily includes personal income tax and corporation tax revenue receipts will continue its present streak and the department will be able to successfully chase the target of collecting Rs 1420 lakh crore in taxes in the next fiscalIt will be very difficult to say how things will pan out the next year but there is no room to say that good times only last for four quarters Mohapatra told PTI in an interviewThe Central Board of Direct Taxes CBDT is the administrative body for the I-T department and according to its March 17 announcement direct tax collections as on March 16 in India broke all previous recordsThe CBDT chief listed the reasons that he believes led to the record collectionsFirst is the strengthening of the Indian economy The better the economy the better is the tax mop up which is happening right now Second reason will be the reforms undertaken across departments having an effect on the tax departments own collection numbers he saidThere are policy measures that have been taken over a period of time in the budget or outside the budget and are now giving the rebound effect or dividends Mohapatra saidThe third reason I would say will be the reforms within the department which have been continuous in the last four yearsProbably we have changed more than ever in the history of this department and these reforms take a while to gather steam and create results he saidMohapatra said after three-four years of working on the reforms both the taxpayer and the department are getting acquainted with the new processes and procedures and they are slowly bearing fruit So the point is that the reforms once triggered do not yield result right away but it takes time to sink in the mind consciousness and also in the operational culture of the department So now probably the time has come in which we are seeing the results of the reforms in the department he saidThe fourth factor Mohapatra said was small but important and is related to the technology induction in the I-T departmentFor example the annual information system AIS in which more and more information about the financial transactions they would have done in the year is now being delivered to the taxpayer This is taking them towards voluntary complianceOut of the over Rs 1363 lakh crore collection as on March 16 only about Rs 54000-55000 crore has come from regular assessment tax under which tax is paid by the assessee after department issues notice to themThe rest of the collection is coming by way of voluntary compliance This is happening because taxpayers are getting empowered with the financial information which is available to them he saidEarlier taxpayers used to struggle to get this information but now they have it at their fingertips the CBDT chief saidSo this has also helped the taxpayer to pay the right amount of taxes he saidMohapatra said that by the end of this fiscal on March 31 the net or actual tax collections after issuance of due refunds should settle upwards of Rs 135 lakh crore The I-T department was given a target to collect Rs 1108 lakh crore budget estimates this fiscal and it was later revised to Rs 1250 lakh croreMohapatra said collections under all heads have been the highest this time He gave a breakup to substantiate his pointThis year till March 16 the collection under the advance tax category was Rs 662 lakh crore which is 407 per cent more than 2020-21 506 per cent more than 2019-20 and 308 per cent more than 2018-19 he saidSimilarly the collection under the tax deducted at source TDS category stands at Rs 679 lakh crore which is 377 per cent more than 2020-21 405 per cent more than 2019-20 and 519 per cent more than 2018-19 he addedThe collection under the self assessment tax SAT category Mohapatra said stands at Rs 134318 crore which is 349 per cent higher than 2020-21 361 per cent higher than 2019-20 and 429 per cent more than 2018-19Under the regular tax category he said the collection is Rs 55238 crore — 465 per cent more than 2020-21 and 89 per cent more than 2019-20For STT securities transaction tax for shares category the government had set a target of Rs 12500 crore at the beginning of the year and in the revised estimates it was hiked to Rs 20000 crore the CBDT chief saidWe are more than Rs 22000 crore by March 16 So all components sub-components gross and net numbers are the highest thus far in the history of the departmentThese are very big numbers and this has come at the most opportune time in the history of the department he saidMohapatra said the department has not completed a sectoral analysis yet to be able to say how various sections of the economy faredSectors which did well will be those that are doing well in the current time like banking However we are yet to complete the sectoral analysis I will come back later to say which sectors have done well and which have not done well he said PTI NES DIV DIV
