CBDT eyes up to 20% tax-GDP ratio in 5-10 years from 12% now

 









India’s net direct tax collections amounted to ₹14,09,640.83 crore for FY22, which is the highest collection ever, signaling that the Indian economy has bounced back after two years of the pandemic, said Central Board of Direct Taxes (CBDT) Chairperson J.B. Mohapatra here on Tuesday.

“As against ₹14.09 lakh crore this year, our collection in 2020-21 was only ₹9.45 lakh crore. In a single year, we moved upward by nearly ₹4.5 lakh crore, registering a growth of 49.02%,” said , addressing a press conference.


The collection of ₹14.09 lakh crore is the best ever collection number as far as income tax and corporation tax are concerned. Before this, only in 2018-19 the department reached a number of ₹11.44 lakh crore.”

Gross direct tax collections (before adjusting for refunds) for FY22 stood at ₹16,34,454.95 crore compared with ₹12,31,270.52 crores in FY21, representing an increase of 32.8%

“Increase in net and gross collection numbers is a major indication of the strengthening of the Indian economy. This gives the clearest signal that the Indian economy has bounced back after two pandemic years,” Mr. Mohapatra said.

“At this point of time, the direct tax-to-GDP ratio is around 12%,” adding that the department was working to raise the ratio to 15-20% in 5-10 years. “The direct tax collection this year has surpassed the indirect tax collection which was other way round till last year. It is now 52%... Our aim is to look at 60% of tax contribution coming from direct tax in some years,” said the CBDT chairperson.

“Apart from the factor of strengthening of Indian economy, the rise in tax collection is attributed to the number of reforms initiated by Indian Government. During past five to six years, the reforms within the department and reforms outside the department contributed a major part in holding the economy together,” he asserted.

The CBDT chairperson elaborated that, “our technological induction improved the department’s functioning and information collection system. Everybody’s financial transaction from different sources and different entities are compiled. It enables taxpayers to see their own transactions in the quickest possible time. Annual Information System (Phase I and II) captures various financial transactions. They are not only compiled, but sent back. This has positive impact on our collection numbers.”

“We are taking steps to expand the taxpayers’ base. We also want taxpayers to migrate from low quadrant taxable entities to higher ones,” said Mr. Mohapatra.

According to CBDT, more than 7.14 crore Income Tax Returns (ITRs) were filed for assessment year 2021-22 on the new e-filing portal, compared to 6.97 crore ITRs filed for AY 2020-21, representing an increase of 2.4%.

Comments

Post a Comment

Popular posts from this blog

Centre appeals against ruling on levy of GST on maintenance charges to resident welfare associations

Image
  The Centre has preferred a writ appeal before the Madras High Court against a single judge's order that flat or villa owners paying more than ₹7,500 a month towards maintenance charges to their residents’ welfare associations must pay Goods and Services Tax (GST) at the rate of 18% only for the amount exceeding ₹7,500 and not for the entire monthly contribution. Justices T.S. Sivagnanam and Sathi Kumar Sukumara Kurup on Wednesday allowed an application filed by the Centre to dispense with production of a certified copy of the judgment passed by Justice Anita Sumanth recently and directed the Registry to list the appeal for admission in the usual course. Justice Sumanth had in July this year quashed an order passed by the Authority for Advance Ruling (AAR) on June 21, 2019 as well as a consequent circular issued by the Department of Revenue under the Union Finance Ministry on July 22, 2019 since both of them had insisted upon collecting GST for entire monthly contribution. The jud...
Read more

Seven key things to know before filing income tax return (ITR) for FY21

Image
  The last date to file income tax return for the financial year 2020-21 has been extended to September 30, 2021. Although there is more than two months left for the deadline to end, it is always recommended to complete the task as soon as possible and not to wait for the last minute. Worth mentioning here is that the income tax department last month launched a new e-filing portal (www.incometax.gov.in) to speed up the processing of tax returns. The I-T department will soon launch a mobile application, having all the features of the new portal. This year taxpayers have to take care of the following changes in the ITR filing process. 1) A new utility named JSON has been launched for filing tax return forms for FY21. At present, only three forms, ITR 1, 2 and 4 have been released. These new forms will import pre-fill data such as personal details, salary income, dividend income, interest income, capital gains and all the information available in Form 26AS. 2) Taxpayers will have the ...
Read more

Income Tax Dept detects ₹350 cr unaccounted cash receipts after raid in Rajkot

Image
  The Income Tax Department carried out a search and seizure operation on a real estate group based in Gujarat's Rajkot and found unaccounted cash receipts in various projects of approximately ₹350 crore, the Finance Ministry said on Friday. The group is among Gujarat’s prominent real estate builders and developers and is actively engaged in real estate, construction and land trading businesses in and around Rajkot. More than 40 premises were covered in the search operation. During the course of operation, many incriminating documents and digital evidences were seized indicating involvement of the group in unaccounted transactions. The IT sleuths found substantial evidence of transactions outside the regular books of accounts, unaccounted cash expenses, cash advances received and interest paid in cash. Evidence of on-money payments in real estate projects-flats, shops and land deals has also been found. Total unaccounted cash receipts in various projects of approximately ₹350 crore...
Read more