FM Revised Direct Tax Collection Target, Increases Target by 8% !!

Direct Tax Collection

The Government on Tuesday revised its direct tax collection target for the current fiscal to Rs 4,00,000 crore, up by Rs 30,000 from the budget estimate.

🙂

The upward revision has been made ‘‘given the likely impact on government finances due to unanticipated drought,’’ finance minister Pranab Mukherjee said.

😦

Mukherjee exhorted top tax officials to make it possible given the ‘‘extremely challenging’’ situation.

‘‘I know what I am asking you to achieve is an extremely challenging target given the current economic situation.

But it is equally true that if such a target has to be achieved, it can only be done by the direct tax,’’ the FM told a gathering of chief commissioners and directors-general of income tax in the Capital.

🙂

As direct taxes have become a major source of central revenue, their role has, accordingly, increased in shaping the economic future of India, the FM said.

He also said the tax base in the country is still small and there is still substantial tax evasion or underpayment of taxes, he said.

The tax base needs to be further expanded, he added.

🙂

Direct tax collections have grown at an average annual rate of 26.8 per cent in the last five years, and have more than trebled from Rs 1.05 lakh crore in the financial year 2003-04 to Rs 3.38 lakh crore in 2008-09, Mukherjee said.

🙂

Direct taxes accounts for the bulk of tax revenues and slowed to 16.5 per cent in 2008-09 owing to the economic slowdown.

😦

FM Pranab Mukherjee will release the draft of the Direct Tax Code and a discussion paper on Wednesday to seek public opinion before finalising the relevant Bill for introduction in Parliament.

🙂

The Direct Tax Code Bill, which is set to simplify the existing Act, will be uploaded on the finance ministry website alongwith a web-based interface for readers to send their suggestions. 🙂

The Bill is likely to be introduced in the winter session.

🙂


The government on Tuesday revised its direct tax collection target for the current fiscal to Rs 4,00,000 crore, up by Rs 30,000 from the budget estimate.

🙂

The upward revision has been made ‘‘given the likely impact on government finances due to unanticipated drought,’’ finance minister Pranab Mukherjee said.

Mukherjee exhorted top tax officials to make it possible given the ‘‘extremely challenging’’ situation.

‘‘I know what I am asking you to achieve is an extremely challenging target given the current economic situation. But it is equally true that if such a target has to be achieved, it can only be done by the direct tax,’’ the FM told a gathering of chief commissioners and directors-general of income tax in the Capital.

However, As direct taxes have become a major source of central revenue, their role has, accordingly, increased in shaping the economic future of India, the FM said.

He also said the tax base in the country is still small and there is still substantial tax evasion or underpayment of taxes, he said. The tax base needs to be further expanded, he added.

Direct tax collections have grown at an average annual rate of 26.8 per cent in the last five years, and have more than trebled from Rs 1.05 lakh crore in the financial year 2003-04 to Rs 3.38 lakh crore in 2008-09, Mukherjee said.

Direct taxes accounts for the bulk of tax revenues and slowed to 16.5 per cent in 2008-09 owing to the economic slowdown.

FM Pranab Mukherjee will release the draft of the Direct Tax Code and a discussion paper on Wednesday to seek public opinion before finalising the relevant Bill for introduction in Parliament. The Bill is likely to be introduced in the winter session.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: