NEW DELHI: Government has achieved its upward revised target of tax collection for FY17, indicating that it should be able to meet the fiscal deficit target for the year. Provisional tax collection pegged total collection at Rs 17.1 lakh crore, up 18% from a year ago.
In the revised estimates for FY17 presented in the budget, the government raised the tax collection target to Rs 17.03 lakh crore against Rs 16.3 lakh crore estimated initially.
The provisional numbers show a better tax performance than revised estimates.
Direct taxes were up 14.2% in FY17 while led by strong excise collections indirect taxes rose 22%.
Government achieves revised tax collection target
“Provisional tax collection figures for 16-17 released. Total net tax revenue grows at 18% to 17.10 lac cr, highest in last 6 years,” revenue secretary Hasmukh Adhia tweeted.
Fiscal deficit at the end of February 2017 stood at 113.4% of the full year estimates.
The strong revenue performance in March should help bring the fiscal deficit to the budgeted level of Rs 5.34 lakh crore, 3.5% of GDP.
PERSONAL INCOME TAX BOOST
Gross direct tax collections were pegged at Rs 10.09 lakh crore. The net collection, after Rs 1.62 lakh crore refunds, stood at Rs 8.47 lakh crore, 14.2% higher than the net collection for the corresponding period last year.
“With this the CBDT has accomplished 100% of the direct tax target for Financial Year 2016-17,” finance ministry said in a statement.
Gross corporate income tax was up 13.1% in FY17, but after adjusting for refunds the rise was less at 6.7%. Including securities transaction tax (STT) personal income tax is up 18.4%. After refunds personal income tax growth was 21%.
Refunds in FY17 were 32% more than the previous year.
The two compliance scheme — Income Declaration Scheme (IDS) and Pradhan Mantri Garib Kalyan Yojana — may have boosted personal income tax collections.
India’s tax authorities will now rely on e-communications with tax payers as part of the increased focus on non-intrusive tax administration.
All notices, letters and other communications to taxpayers will have be through e-mode, according to a latest directive by the apex direct taxes body.
The Central Board of Direct Taxes has notified procedure, formats and standards for ensuring secured transmission of electronic communication using ‘EProceeding’ between the assessing officer and the taxpayer.
The functionality to conduct E-Proceeding will be available for all types of notice or questionnaire, letter issued under various sections of the income tax.
Taxpayer will have the facility to opt out of E-Proceeding and such option has to be communicated to the income tax department through the e-Filing website.