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
GSTR-3B deadline expired: File now to avoid input tax credit loss, GST registration cancellation
ITR Filing: Income tax department shortens time limit for condonation of delay What it means for taxpayers
CBDT launches campaign to intimate taxpayers on undeclared foreign assets in ITR
ITR AY2024-25: CBDT launches campaign for taxpayers to report income from foreign sources
CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
CBDT weighs overhaul of designations for income tax officials to secure better clarity
Direct tax-GDP ratio at millennial high in FY24
CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
Tax filing: How to choose the right ITR form
Income Tax Return: How to maximise your tax refunds while filing ITR?
Last date for filing 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.