Income Tax department eyes Rs 2.56 lakh crore tax mop up from Mumbai in FY16
July, 10th 2015
The Income Tax department is looking at collecting tax worth Rs 2,56,000 crore from the Mumbai zone during this fiscal, which is 13 per cent more than the amount mopped up last year.
The department had collected Rs 2,26,000 crore tax from the Mumbai zone during 2014-15.
"We are working on a three-pronged strategy to achieve the higher target at Rs 2,56,000 crore this fiscal year," newly-appointed Principal Chief Commissioner of Income Tax and Head of Mumbai zone, D S Saxena told.
Explaining the strategy further, Saxena said, "To begin with, the department will try to increase the number of income tax returns. Secondly, we will try to fill up the vacancies at various levels, so that there is enough manpower, and finally we will try to recover the large amount of tax dues."
He, however, did not specify how much are the dues under litigation.
Saxena said the New Delhi zone, which he was heading prior to taking over the Mumbai zone a few days back, had collected Rs 1,02,000 crore in 2014-15, which was more than Rs 500 crore from the target for the year.
However, he did not say what is the target for the Delhi zone for this year.
The official said that the Mumbai zone being the largest contributor to the income tax kitty will be under special watch to meet the target.
"Even though we are not watching companies sector-wise, we are closely monitoring their profit on a quarterly basis. We are also monitoring advance tax payouts," he said, adding, "In case we find any large variation in profit margins and advance tax payout, we will issue notices to them and ask them to make up the differences."
The net effective tax being levied on corporates currently stands at 22.6 per cent of the profit.
"As on July 8, the Mumbai zone collected Rs 28,693 crore, up 13.26 per cent from Rs 25,334 crore a year ago," said Saxena.
TDS collection as on date in Mumbai zone stood at Rs 22,914 crore as against Rs 21,811 crore in the corresponding period last year, a growth of 5.06 per cent.
The zone has collected Rs 13,350 crore in corporate taxes this year so far as against Rs 10,095 crore a year ago.
However, personal income tax collection has been down a notch so far from the Mumbai zone at Rs 13,694 crore so far, down from Rs 13,855 crore in the corresponding period of 2014-15.