A wor­ried CBDT di­rects of­fi­cials to ramp up tax-col­lec­tion ef­forts

CBDT chief writes to I-T Prin­ci­pal Com­mis­sion­ers

The Hindu Business Line - - NEWS - SURESH P IYENGAR

The Cen­tral Board of Di­rect Taxes has ex­pressed con­cern over the mod­er­ate growth in rev­enue col­lec­tion and has asked in­come tax de­part­ments of var­i­ous States to ramp up col­lec­tions even as the De­cem­ber 15 dead­line for pay­ing ad­vance tax is fast ap­proach­ing.

In a re­cent mis­sive ad­dressed to the Prin­ci­pal Com­mis­sion­ers of In­come Tax, Sushil Chan­dra, Chair­man of Cen­tral Board of Di­rect Taxes, said the ac­tual rev­enue col­lec­tion across In­dia has reg­is­tered a growth of 14.36 per cent as against the re­quired growth rate of 15.3 per cent.

Ex­press­ing ap­pre­hen­sion over some re­gions reg­is­ter­ing nega­tive growth and a few States miss­ing the ex­pected growth rate in rev­enue col­lec­tion, Chan­dra said it is quite ev­i­dent that suf­fi­cient ef­forts have not been made in the area of max­imis­ing rev­enue gen­er­a­tion in some re­gions.

Ar­rears col­lec­tion lags

Chan­dra was also dis­ap­pointed over the lack of ef­forts from tax of­fi­cials in re­cov­er­ing tax ar­rears and said the de­part­ment had re­cov­ered only 25 per cent of the an­nual rev­enue col­lec­tion from ar­rears of ₹71,500 crore.

Sim­i­larly, he said the tax de­part­ment has achieved only 1.5 per cent of rev­enue de­mand raised against the over­all tar­get of 20 per cent.

“Very few re­cov­ery re­lated sur­veys have been car­ried out and no prop­erty has CBDT Chair­man Sushil Chan­dra

been auc­tioned by TRO (tax re­cov­ery of­fi­cers) for re­cov­ery. All mea­sures to step up col­lec­tion in­clud­ing pros­e­cu­tion un­der Sec­tion 276C(2) (wil­ful at­tempt to evade pay­ment of tax) in ap­pro­pri­ate cases,” said Chan­dra in the let­ter.

Though gross di­rect tax col­lec­tion (un­der the in­come tax, per­sonal tax and other di­rect tax cat­e­gories) was up by 15.2 per cent in the first six months of this fis­cal at ₹4.39 lakh crore, it ac­counts for only 45 per cent of the Bud­get tar­get of ₹9.8 lakh crore.

The gov­ern­ment has re­funded ₹89,507 crore be­tween April and Oc­to­ber.

Ad­vance tax es­ti­mate

Ear­lier, CBDT had dropped plans to di­rect cor­po­rates and in­di­vid­ual pro­fes­sion­als to sub­mit their tax pay­ment es­ti­mate for next two quar­ters in ad­vance.

In Septem­ber, it came out with a draft no­ti­fi­ca­tion di­rect­ing com­pa­nies with an­nual in­come of ₹1 crore and pro­fes­sion­als with ₹50-lakh in­come per an­num to re­port es­ti­mates of their cur­rent in­come, tax pay­ments and ad­vance tax li­a­bil­ity on a vol­un­tary ba­sis by Novem­ber 15. How­ever, it did not no­tify the fi­nal norms on the pro­posal.

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