Slowdown hits tax collections
With less than two months left for the financial year to come to an end, the Income Tax Department is still Rs 62,000 crore away from the target of Rs 1.5 lakh crore, reports Manish Pachouly.india Updated: Feb 04, 2009 00:59 IST
The economic slowdown has severely affected direct tax collections in the city.
With less than two months left for the financial year to come to an end, the Income Tax Department is still Rs 62,000 crore away from the target of Rs 1.5 lakh crore.
The collection so far stands at Rs 87,941 crore and the Income Tax Department is likely to fall short of its target for the city, a rare occurrence.
The low collection in the commercial and financial hub of the country has also affected the overall revenue figure of the country.
The direct tax collection till now from all over the country is Rs 1 lakh crore short of the target of Rs 3.95 lakh crore.
The growth in direct tax collection countrywide was only 12 per cent instead of the more than 20 per cent projected, said Central Board of Direct Taxes Chairman S.S.N. Moorthy.
The Central Board of Direct Taxes governs the Income Tax Department in the country.
Moorthy was in the city on Tuesday to attend the ceremony to lay the foundation stone of a residential complex for Income Tax Department employees in Bandra-Kurla Complex.
The foundation stone was laid by Union Government Secretary (Revenue) P.V. Bhide.
On meeting the target for the city, Moorthy said all resources would be mobilised to increase tax collection.
“We expect we will be able to touch a reasonable target,” he said.
Other department officials, requesting anonymity for lack of authorisation to speak to the media, said the city was unlikely to reach the target though it would marginally cross last year’s collection figure.
The Income Tax Department in the city had collected close to Rs 1.14 lakh crore in 2007-08.
About 35 per cent of the overall direct tax collection in the country comes from the city, which has about 27 lakh income tax assesses.