Direct tax revenue growth is at 13.4% so far against the revised target of 19.8% for the full year
The central government is unlikely to meet its direct tax collection target for the financial year 2018-19, given the subdued revenue mop-up so far. As on March 15, the Income-Tax Department had collected Rs 9.23 lakh crore out of the revised direct tax collection target of Rs 12 lakh crore for the current fiscal.
"The direct tax revenue growth is at 13.4% so far against the revised target of 19.8% for the full year," a finance ministry official said.
“The net direct tax collection for the current fiscal year until March 15 was at Rs 9.23 lakh crore against Rs 8.14 lakh crore collected during the same period last year. Corporate tax collection during this period stood at Rs 5.24 lakh crore while income tax collection was at Rs 3.87 lakh crore,” a source said.
The finance ministry officials said that Central Board of Direct Taxes (CBDT), the apex body of the I-T Department, is expecting around Rs 2 lakh crore more collection, mainly from advance tax payments. The last date for payment of the fourth quarter advance tax installment was March 15.
“It takes a couple of days for the payments to show. Apart from advance tax collections, the tax department is focusing on the tax deducted at source (TDS), self-assessment and regular assessment collections. The collections normally increase as March ends,” the official said.
“It appears that the CBDT won't be able to meet the revised target of 19.8% growth for direct taxes. The focus is now on achieving at least the original budgeted target of Rs 11.50 lakh crore or get closer to it,” another official said, adding that 14.6% growth in direct taxes may be achieved for the full year.
The finance ministry had revised its direct tax collection target to Rs 12 lakh crore in the revised estimate in the interim Budget from the earlier budgeted target of Rs 11.5 lakh crore.
“The revised direct tax revenue target of 19.8% was overambitious. The growth rate in the direct tax revenues is likely to be around 14%. This looks reasonable given that the nominal Gross Domestic Product (GDP) growth rate for the current year may be around 11% plus, implying tax buoyancy of 1.2%,” said D K Srivasatava, chief policy advisor, EY.
In 2017-18, direct tax collection was Rs 10.02 lakh crore, which exceeded the then revised budgeted target of Rs 9.8 lakh crore.
WAY OFF MARK
- Direct tax revenue growth is at 13.4% so far against the revised target of 19.8% for the full year
- Corporate tax collection stood at Rs 5.24 lakh crore while income tax collection was at Rs 3.87 lakh crore
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