Direct Tax Collection on the record high Direct Tax Collection on the record high Chartered Accountant CA ICAI Chartered Accountants CA ICAI CAinINDIA ICAI Announcements Accounting Standards CA News ICAI Students ICAI Members Case Laws CPT IPCC Final ICAI Course CA Course ICAI Forum CA Question Papers ICAI Study Material

« Direct Tax »

Open DEMAT Account in 24 hrs
Govt kicks off direct tax code revision
ITR 2024 25 Check tax department s update on TDS and refunds
Income Tax: Why did some taxpayers receive notice for discrepancy in house rent receipt? IT Dept explains
Income tax exemption: 4 financial instruments you can still invest into before March 31
CBDT drops small tax demands but not TCS, TDS claims
ITR Refund: Awaiting money from Income Tax? Here's why you have not yet received your amount
Income Tax Notice: What to do if you receive a Section 143 (1) notice from taxman?
Average tax return processing time cut to 10 days: CBDT
7 types of Income Tax Notice ITR filers may receive for AY 2023-24
ITR filing: Do these advance preparations before filing your income tax return
What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?


« Growth prop for tax surge...	Upswing in India's direct tax mop up: Chidambaram... »
Direct Tax Collection on the record high

June, 10th 2008
Union Finance Minister P Chidambaram on Monday said that a two-day meeting would be convened with the members of Central Board of Direct Taxes (CBDT) for discussing the issue to revise the target upward of direct tax collection as this year direct tax collection has surpassed the indirect tax collection by whopping Rs. 34,000-crore. The Ministry has targeted to achieve direct tax collection of Rs.3,65,000 crore for the current fiscal 2008-09 as per Finance Minister informed. This year government has collected Rs.3,14,468-crore, 117% more as against original budget estimate for this fiscal. The CBDT has released the data of total direct tax collection revealing that the collection cost of direct tax has been reached all time low. This year, CBDT has spent Rs.0.54 for collection every Rs.100 illustrating the lowest amount spent in the world. On the other hand the total direct tax collection was Rs.44,600-crore in 1998-99 whereas the collection cost percentage was 1.90 and in 2003-04, the total direct tax collection has been reached Rs.1,05,088-crore at 1% of spent cost collection. The data show that in just four years, the total direct tax collection has triplets while the cost collection percent was reduced to half level. If this trend continues with 40 percent ratio, India would meet the fiscal deficit target and blunt the effect of increasing oil bills and other subsidies. The Direct tax collection includes income tax, Tax Deduction on Sources (TDS), sales taxes tax on property etc. According to Income tax department stats, there was a base of 1.7 crore assesses in 1998-99, which has gone to 3.5-crore in last fiscal while the gross domestic product (GDP) ratio has also been increased from 2.68% in 1999 to 6.67 per cent in 2007-08. The TDS has risen to 51% in last fiscal while advance tax hiked 23.6% and self-assessment tax by 62 per cent, the sources reveals. In a two-day meeting, FM will discuss the report on Business Process Reengineering (BPR) prepared by PricewaterhouseCoopers, besides discussing over revising the target, providing more services for taxpayers and other tax matters.