India Expects to Surpass Rs 22 Lakh Cr Direct Tax Target

New Delhi: The government on Monday said that it would exceed the Rs 22 lakh crore direct tax collection target set for the current fiscal year. As per the latest data released by the tax department between April 1 and November 10, net direct tax collection has grown 15.41 per cent to Rs 12.11 lakh crore, including net corporate tax of Rs 5.10 lakh crore and non-corporate taxes of Rs 6.62 lakh crore.

“The government will exceed the Rs 22.07 lakh crore direct tax collection target set for FY2024-25. More than 6,000 suggestions have come in for a review of the income tax law to make the language simple and easy to understand. We are hopeful and believe that we will exceed the budget target for tax collection as the collections from corporate and non-corporate taxes have risen,” CBDT chairman Ravi Agarwal said while inaugurating an event here.

“As per the total target of Rs 22.07 lakh crore, Rs 10.20 lakh crore from corporate tax and Rs 11.87 lakh crore from personal income tax, corporate tax and other taxes are also included. We expect the collection of net corporate tax of Rs 5.10 lakh crore and non-corporate taxes (including taxes paid by individuals, HUFs, firms) of Rs 6.62 lakh crore. Also, securities transaction tax (STT) worth Rs 35,923 crore was mopped up during the period of April 1 and November 10 as well,” Mr Agarwal said.

The CBDT chief also said that taxpayers who have not disclosed their foreign income or assets in their ITRs have time till December 31 to file their revised return for the 2023-24 fiscal. The tax department is in the process of sending SMS and emails to those assessees who have not disclosed high-value assets.

“With regard to notifying taxpayers for non-disclosure of foreign assets, the tax department gets all details about foreign assets from nations under the automatic exchange of information and match such details with the disclosures in the ITRs,” he said, adding that the basic intent is to remind taxpayers to declare the foreign assets and they can file revised return by December 31.

Foreign assets include foreign bank accounts, foreign cash value insurance, financial interest in any business/entity, immovable property outside India, foreign equity or debit interest, accounts in which an assessee has signing authority, and any other capital assets.

Last month, the CBDT's internal committee invited public inputs for review of the six-decade-old I-T Act with regard to simplification of language, litigation reduction, compliance reduction, and obsolete provisions. The CBDT has set up 22 specialised sub-committees to review various aspects of the Act.

Pursuant to the Budget announcement by Union finance minister Nirmala Sitharaman for a comprehensive review of the Income-tax Act, 1961, the CBDT had set up an internal committee to oversee the review and make the Act concise, clear, and easy to understand, which will reduce disputes, litigation, and provide greater tax certainty to taxpayers.