GOVT STARES AT DIRECT TAX MOP-UP SHORTFALL

The income-tax department collected over ~4 trillion as advance tax from corporates and individuals as of March 15 in the current financial year, about 15 per cent more compared with the tax mop-up in the corresponding period last year. However, the total direct tax collection stood at a little over ~9 trillion, giving the taxman just two weeks to reach the FY19 revised target of ~12 trillion. SHRIMI CHOUDHARY writes

The income-tax (I-T) department collected over ~4 trillion as advance tax from corporates and individuals as of March 15 in the current financial year, about 15 per cent more compared with the tax mop-up in the corresponding period last year. However, the total direct tax collection stood at a little over ~9 trillion, giving the taxman just two weeks to reach the 2018-19 revised direct of ~12 trillion. Officials said it was an extremely difficult task to raise the remaining ~3 trillion in direct tax revenue before March 31.

SBI, ONGC, and PNB said to have topped the list of advance tax payments, but the amounts could not be ascertained. However, it is learnt that the advance tax collection from the three companies, and from staterun banks, oil and gas public sector units (PSUs) and other government-owned entities like LIC and the National Bank for Agriculture and Rural Development, was below expectations. It is also learnt that senior tax officials of some jurisdictions, including Mumbai, expressed their concerns to the Central Board of Direct Taxes and the finance ministry about a possible revenue shortfall.

The growth rate under different heads show some interesting trends. As of March 11, growth in the collection under tax deduction at source (TDS) grew 18 per cent to ~4.44 trillion and so as self-assessment tax, which rose 6.5 per cent to ~83, 465 crore.

However, the regular assessment tax (recovery from arrear and current demand) showed negative growth (-5.4 per cent) as compared to the same period a year ago.