I-T pins hopes on delays to meet direct tax FY09 target
April, 08th 2009
The income-tax department in Mumbai still thinks it can meet the revised FY09 target for direct tax collection. The department has already collected collected Rs 1,31,000 crore, which is lower than the revised target of Rs 1,33,000 crore and since delayed payments are trickling in even now, the department is of the view that it would be able to generate the required Rs 2,000 crore in the coming days.
The target for Mumbai had to be revised to Rs 1,33,000 crore, from the original projection of Rs 1,50,000 crore, due to the economic slowdown. Though March 15 is the last date for paying the fourth and final installments of advance tax payments, payments usually continue till March 31 and most often spill over to the middle of April. This is largely due to technical problems like delays in clearing cheques and uploading figures in the departments computer systems.
At one stage, it was expected that tax collections wouldnt meet even the revised target as margins declared by companies werent encouraging. After chief commissioners of all zones took steps to check possible tax leakages and also put pressure on tax defaulters, including TDS defaulters, the situation improved. Anti-evasion measures such as surveys and raids also boosted the tax collections, said persons familiar with the developments.
The Rs 40,000-crore collected from Mumbai by way of tax deducted at source was a major factor that helped the department come close to the revised target. Several companies had not paid TDS despite deducting the amount from their employees as well as from customers. A series of surveys conducted by the TDS wing of the department, led to a correction in the amount.
Tax paid by multinational companies operating in India over 3,000 MNCs are present in India also saw an increase over the previous years collection. The departments wing for international tax had collected Rs 12,000 crore in the just concluded fiscal year, which is 15% more than the previous years collection.