I-T, corporate tax mop up exceeds revised estimates at Rs 9.45 lakh crore in FY21 – Times of India

NEW DELHI: Income tax and corporate tax collections at Rs 9.45 lakh crore in the fiscal 12 months ended March 31 exceeded the revised goal by 5 per cent however have been 10 per cent decrease than the direct tax collections in the earlier 12 months, tax division head stated on Friday.
The authorities had projected Rs 13.19 lakh crore from direct taxes in the finances for 2020-21 introduced on February 1 final 12 months. This was earlier than pandemic took roots; and submit it pummelling the financial system, the goal – referred to as revised finances estimate – was lowered to Rs 9.05 lakh crore.
Central Board of Direct Taxes (CBDT) chairman PC Mody stated his division has exceeded the revised estimate (RE) regardless of issuing substantial refunds in the 2020-21 fiscal (April 2020 to March 2021).
Direct tax collections, which consist of revenue tax and corporate tax, in 2019-20 fiscal was Rs 10.49 lakh crore. As per the provisional figures launched on Friday, assortment in 2020-21 is Rs 9.45 lakh crore. The goal for present fiscal has been set at Rs 11.08 lakh crore.
The assortment for simply concluded 2020-21 fiscal was 5 per cent larger than the RE, however was 10 per cent decrease than the mop up in 2019-20.
During the 2020-21 fiscal, the online corporate tax assortment stood at Rs 4.57 lakh crore, whereas web private revenue tax was Rs 4.71 lakh crore. Rs 16,927 crore got here from securities transaction tax (STT).
The gross direct tax assortment in the final fiscal stood at Rs 12.06 lakh crore. After taking out the refunds of Rs 2.61 lakh crore, the online mop up stood at Rs 9.45 lakh crore. There has been a 42 per cent progress in the refund issuance.
“Net direct tax collections for the FY 2020-21 have shown an upswing, despite the inherent challenges brought on by the Covid-19 pandemic on the economy,” a finance ministry assertion stated.
Loads of measures have been taken to ease compliance burden and supply higher taxpayer providers, Mody stated, including that this obtained mirrored in the tax assortment for final fiscal.
He hoped that very same spirit in tax assortment would proceed in the present monetary 12 months.
Transparent and honest taxation system provides us the arrogance, aside from revival of the financial exercise, regardless of the troublesome instances, that we can meet the present targets as properly, Mody added.
ICRA chief economist Aditi Nayar stated the direct tax collections seem to have contracted by a modest 3.5 per cet in March 2021, suggesting the again-ended launch of refunds.
“Regardless, with direct and indirect tax collections exceeding the Revised Estimates, we expect the fiscal deficit to be limited to Rs. 17.0 -17.2 trillion for the just-concluded fiscal. With the contraction in direct taxes in FY2021 limited to 10 per cent, the growth target for FY2022 as per the Budget Estimates is now around 17 per cent, only modestly higher than the projected nominal GDP growth,” she added.
India Ratings and Research chief economist Devendra Kumar Pant stated, “The economy is slowly recovering and with 3QFY21 registering positive growth after two consecutive quarters of negative growth, the numbers are more on expected lines. This along with indirect tax collections for FY21 suggests that fiscal deficit in FY21 may be lower than the revised estimate, provided there is no slippage on expenditure side.”
Mody stated that the Vivad Se Vishwas scheme has netted about Rs 54,000 crore to date and the final date for cost beneath the scheme is April 30.
“One third of the disputes have been settled under the scheme. I don’t think there is any necessity for any similar scheme,” he stated when requested if the federal government was planning any such scheme this 12 months.
The Vivad Se Vishwas scheme supplies for settlement of disputed tax, curiosity, penalty or charges in relation to an evaluation or reassessment order on cost of 100 per cent of the disputed tax and 25 per cent of the disputed penalty or curiosity or payment.
The taxpayer is granted immunity from levy of curiosity, penalty and establishment of any continuing for prosecution for any offence beneath the Income-Tax Act in respect of issues lined in the declaration.
To a question on whether or not it’s possible to once more tweak corporate taxes to suit into world minimal corporate tax, Mody stated the federal government has already tried discount in corporate taxes.
“A further calibration of corporate tax rate will be not the agenda at the given moment because it has already been done (in the country),” he stated.
Meanwhile, US Treasury secretary Janet Yellen had earlier this week referred to as for an adoption of a minimal world tax for multinational firms by the G-20 nations.