Direct tax collections of FY 2018-19 raised by 15.7% by last year

NewsBharati    11-Dec-2018
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New Delhi, December 11: The Income tax department has in it’s very recent declaration announced the total direct tax collection in relation to the financial year 2018-19. The provisional figures of Direct Tax collections up to November, 2018 show that gross collections count to Rs. 6.75 lakh crore. This figure is claimed to be 15.7% higher than the gross collections for the corresponding period of last year i.e assessment year 2018-19.
 
According to the statement, the assesses have initiated to claim refunds amounting to Rs.1.23 lakh crore which have been issued by the department between April and November this year. This particular figure measures 20.8% higher than refunds issued during the same period in the preceding year.
 
However, the net collections calculated after adjusting for refunds, have increased by 14.7% counting to Rs. 5.51 lakh crore during April to November 2018. The Budget estimates for the financial year 2018-19 was evaluated to be Rs. 11.50 lakh crore. Meanwhile, the net direct tax collections represent 48% of the total estimates earlier.
 
The percentile growth rate of gross collections for Corporate Income Tax (CIT) is 17.7% while that for Personal Income Tax (PIT) is 18.3%. This being of grave importance towards the collection count, the net growth in CIT collections is 18.4% and that in PIT collections is 16.0%.
 
It is pertinent to mention that collections of the corresponding period of F.Y. 2017-18 also include extraordinary collections under the Income Declaration Scheme (IDS), 2016 amounting to Rs.10,833 crore (Third and last instalment of IDS), which do not form part of the current year’s collections, reported the statement.
 
“With some efforts by the tax authorities to collect the arrears demand it may crossover also. But in all these, the basic assumption is that during the December quarter, the government would receive 30 percent of the budgeted amount. So, December figures are very important and we need to watch for that,” Sanjay Kumar, Senior Director at Deloitte India said.
 
The government expects to exceed the direct tax target for the year, which would make up some of the shortfall in goods and services collection.