The Indian economy is on a growth path with many business sectors performing well as reflected in the income tax (I-T) collection figures.
The net I-T collection in the city for this financial year (2010-2011) till December-end was almost 13% more than the corresponding period last year. From April to December 2010, Mumbai collected Rs 1.05 lakh crore in tax as compared to Rs 93,300 crore previous year.
The target for Mumbai is Rs 1.5 lakh crore, which means the city needs to collect Rs 45,000 crore in the last quarter (from January to March). Chief commissioner of income tax, Mumbai, PP Srivastava said the department hopes to collect the target amount.
The national figures too showed 19% growth in the collection this year so far reaching Rs 3.09 lakh crore. The all-India target is Rs 4.3 lakh crore.
A senior I-T officer, requesting anonymity because he is not authorised to speak to the media said the gross collection in the city was Rs 1.26 lakh crore, but the department issued Rs 21,000 crore as refunds to those who paid excess taxes. “Hence, the net collection came to Rs 1.05 lakh crore,” he said.
The officer added that issuing refunds at a faster rate, to those eligible, is also a priority for the department. I-T officers said a large part of the growth is because of a big jump in advance tax collections in the December quarter.
Advance tax is collected from corporates in four installments – June, September, December and March. It is to be paid latest by 15th of these months in every quarter.
The December quarter of advance tax witnessed a growth of a little over 29% in the Mumbai region. Over all, the advance tax collections in Mumbai so far (for June, September and December quarters together) witnessed a growth of 21%.
“We expect that a large part of the remaining tax of Rs 45,000 crore will come in March, which will be the last installment of advance tax,” the officer said.
The department also hopes for a good collection from the tax deducted at source (TDS) wing, which is its stronghold. As against the TDS target of Rs 46,000 crore (which is part of the overall target), the wing has already collected around Rs 36,000 crore.