The income tax (I-T) department in Mumbai has, for the first time in three years, exceeded its collection target by Rs 3,000 crore. The department collected Rs1.53 lakh crore in 2010-2011, against a target of Rs1.5 lakh crore.
The department is thrilled as it had been struggling to exceed the target ever since the economic slowdown. “This is a very good sign,” said PP Srivastava, chief commissioner of income tax, Mumbai. He said it was because the banking, pharmaceutical and auto parts sectors had done exceptionally well in the just concluded financial year.
In 2008-2009, the union government had to bring down the collection target from Rs1.45 lakh crore to Rs1.33 lakh crore in Mumbai because of poor performance by various industries owing to the slowdown.
That year, the department had collected just Rs1.17 lakh crore.
In the subsequent year (2009-2010), the department in Mumbai again fell short of the target and collected only Rs1.27 lakh crore. The target then was Rs1.43 lakh crore.
“This year we finally exceeded the target which means the economy is moving up,” another senior I-T official said requesting anonymity as he is not authorised to speak to the media. Officials said the growth in Mumbai matters a lot because the city contributes at least 35% to the country’s total tax collection.
“Besides the good performance by some sectors, a good number of search and survey operations also helped push up tax collection,” the official said.
The department exceeded the target this year despite facing a staff crunch at crucial positions in Mumbai.
There is a 15% shortage at the assistant commissioner and deputy commissioner level. These positions matter most for tax collection work. Also, at the joint and additional commissioner level, which is the supervisory post for assistant commissioner and deputy commissioner level, the shortage is 25%.