The tax department which was relying on the direct tax dispute resolution or the Vivad se Vishwas (VsV) scheme to meet its tax mop-up was unable to implement the scheme owing to the outbreak of the pandemic Covid-19 and the subsequent 21-day lockdown declared by the central government.
Mumbai, which contributes to 32 per cent of the overall tax collections, fell short of Rs 50,000 crore and managed to collect Rs 3.20 lakh crore of the RE of Rs 3.7 lakh crore. A decline of 12 per cent as compared to the collection of the corresponding previous year which stood at Rs 3.6 lakh crore. The Delhi circle has also witnessed a decline of 9 per cent in the tax collection as compared to its mop up last year. While in FY18, the tax collections stood at Rs 1.6 lakh crore, this year it was Rs 1.46 lakh crore, added sources.
The exchequer was shaved off Rs 1.45 lakh crore as the government slashed corporate tax rates up to 10 percentage points, the biggest reduction in 28 years.
