The Income Tax department, Mumbai Region, has reason to smile. In the first four months of the present financial year, it has collected Rs 11,400 crore tax which is a whopping 150 per cent more as compared to the Rs 4,800 crore collected for the same period in the last fiscal.
Recently appointed Chief Commissioner of Income Tax, Mumbai, K Venkataramani told HT on Wednesday that the collection in Mumbai is almost one-third of the total I-T collection all over India. Venkataramani said the spurt could be because of the good performance of some important sectors.
The Mumbai Circle has been given an "enhanced" target this financial year which is Rs 69,548 crore and going by the revenues collected, it looks well set on that path. Though many I-T officials said the collection so far was a good sign, they were still nervous about the total target and getting there. The target has been increased by 21 per cent this financial year as compared to last year. Last fiscal's target for Mumbai Region was Rs 57,000 crore which the department had failed to achieve, falling short by Rs 4,000 crore.
However, Venkataramani said the department was focusing on advance tax and top taxpayers this year. "We are zeroing in on them to see that they pay the correct amount of their tax liability," he said. He added that the department was also focusing on tax deducted at source (TDS).
Though the department is taking pride in increased tax collection so far, a senior I-T officer expressed concern that it could be short lived. "The target was increased by 21 per cent this year, but the overall growth in the economy is forecasted at around eight per cent. If the overall growth rate is so less than the increase in our target, how is the department going to achieve it?" he asked.