Rajasthan records highest growth rate in direct tax collection
April, 04th 2017
Rajasthan for the financial year 2016-17 registered highest growth rate in direct tax collection among all the states in the country. Against the previous financial year, total percentage growth rate of direct tax collection was 53% while for all India the growth rate recorded was 11.8%.
In absolute numbers, the total collection through income and corporate tax was Rs 19,654 crore. It was Rs 6,864 crore more than previous financial year where it was Rs 12,790 crore.
Direct taxes are paid in entirety by a taxpayer directly to the government. It is also defined as the tax where the liability as well as the burden to pay it resides on the same individual.
Rajasthan is the only state in the country that has crossed 50% in the country. Sources claim that figures are remarkable as in 2015-16 the total growth rate was just 5.5%.
According to them various factors contributed to the significant rise, both in percentage and absolute numbers.
"Post demonetization people are voluntarily coming forward and paying their taxes. Also with Aadhaar getting linked to bank accounts, traceability of defaulters would be immediate. Moreover, tax payers are now aware of consequences of not paying their returns," said an official with income tax department.
There has also been substantial rise in the number of new tax payers during 2016-17. More than 1.5 lakh new assesses have been added in the Rajasthan region.
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Among other reasons, officials claim that there has been a surge in entrepreneurship in the state with more business activities taking place unlike in the past. Figures also swelled up because of income disclosure scheme (IDS) where Rajasthan region received about Rs 400 crore.
Officials are hopeful that bracket of tax payers will only widen in years to come as more people enter into work force. Also with new checks and balances in the system, people will be left with no option but to file their returns and pay their taxes.