The next three months are going to be uphill for the Mumbai Income Tax (I-T) department.
It needs to collect about Rs 50,000 crore to meet its target of Rs 1.4 lakh crore for the financial year 2009-2010. So far, it has netted Rs 90,240 crore – it has till March 31 to make up the balance.
The department’s collections were especially slow in the last fiscal (2008-2009), given the economic slowdown. The Mumbai circle had then collected only Rs 1.17 lakh crore, against its target of Rs 1.33 lakh crore.
Now, with the economy reviving, collections have improved relative to last year, and officials are hoping the department will meet this year’s target.
Mumbai circle’s original target of Rs 1.34 lakh crore was subsequently revised upwards to Rs 1.4 lakh crore.
“We will definitely meet the original target,” said R.K. Singh, chief commissioner of Income Tax, Mumbai, adding that given the current optimistic economic indicators, the department will also likely meet the revised target of Rs 1.4 lakh crore.
However, the rate of growth in collections so far is worrying. So far, the Mumbai circle’s collection this year is only eight per cent more than last year’s collection for that period.
“We need 35 per cent more collection to reach the target, and that will take serious effort,” a senior I-T official said requesting anonymity as he is not authorised to speak to the media.
The department has completed assessment for time-barred cases and by December 31, sent demand notices to tax defaulters. Such assessees are given one month to pay up their tax outstandings.
“By January-end or the start of February, we hope to make significant collections from such assessees,” the official said. The department is also hoping for strong contributions from corporates that did well in the third quarter (October to December) of this fiscal.
For this fiscal so far, corporate tax collection in Mumbai stood at Rs 62,200 crore, which is 11.6 per cent more than last year’s corporate tax collection.