India’s direct tax collections fall short by Rs 1.4 lakh crore of the revised estimates

Mumbai: Despite the revised estimate (RE) made in the Union Budget, direct tax collections for the financial year ended March 31 fell short of Rs 1.42 lakh crore. The overall collections stood at Rs 10.27 lakh crore, around 1.36 per cent short of the RE of Rs 11.7 lakh crore and 8 per cent in comparison to the last fiscal year mop up of Rs 11.17 lakh crore, sources said.

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.

Source Article

Lois C. Ferrara

Next Post

Indian companies revisiting employee-wellness strategies amid Covid-19 outbreak

Fri Apr 3 , 2020
By Lijee Philip Indian companies are rethinking their employee-wellness strategies and customising programs to accommodate the tectonic change in people’s habits after a prolonged phase of working from home due to the Covid-19 lockdown and expect it will manifest in cultural shifts and personal choices, experts said. Indian companies are […]