Covid impact: Huge fall in I-T collections

Growth dips -29.7 pc in the Hyderabad region (TS and AP)

As the Covid-19 pandemic drags on, income tax collections in this financial year present a gloomy picture of the country’s economy, which has nosedived even as businesses are struggling to come out of the massive losses.

The overall tax collections (up to August 10) for the financial year 2020-21 stands at a little over `1.89 lakh crore as against `2.50 lakh crore during the corresponding in the previous fiscal, recording a massive dip in the overall growth of - (minus) 24.5 percent.

The Central Board of Direct Taxes (CBDT) has set a target of `13.19 lakh crore for the IT department for the financial year 2020-21. Going by the prevailing situation, not much improvement is expected as several businesses have either wound up or are on the verge of collapsing under the burden of heavy losses.

According to the latest figures, which are accessed by Deccan Chronicle (from April 1 to August 10), the net collection from the financial capital Mumbai was

`59,881.1 crore while the figure during the same period last financial year was `65,429.7 crore. The growth dipped to -8.5 per cent. The corporate tax collected was `27,244.9 crore and IT was `27,015.2 crore. In the Delhi IT region, the net collection stands at `25,027.3 crore while the figure of the last financial year was

`37,363.1 crore. The growth was down to -33 per cent.

Down south, Bangalore IT region has something to cheer about as the net collections stands at

`30,755.1 crore as against

`27,455.6 crore in the previous year, recording a growth of 12 per cent. Corporate tax was

`12,705.0 crore and IT was `17,883.6 crore. It should be noted that Karnataka was among states that had eased lockdown a bit early.

In the Hyderabad IT region, which comprises both Telangana and Andhra Pradesh, the net collection was `10,517.7 crore while the figure during the same period last year was `14,957.0 crore. The growth dipped to -29.7 per cent. Corporate tax collected was to the tune of `3,225.6 crore while IT was `7,175.7 crore. The target set for the Hyderabad region alone for 2020-21 is a whopping `73,809 crore.

“Due to the pandemic and the subsequent lockdown, which has adversely impacted businesses across the spectrum, it was a herculean task to take up tax collection operations. Even, IT searches and raids have been halted due to the pandemic. All industrialists and businessmen have been complaining of how the pandemic has broken the back of their respective businesses,” officials told this newspaper.

With regards to Chennai, the net collection was

`11,523.7 crore while the previous year it was

`19,432.9 crore and the growth rate took a massive hit at -40.7 per cent.