Hyderabad: Whether or not the economic slowdown will have an impact on the overall Income Tax collections in the country will be known on September 15, the date for payment of advance tax installment. But for now, the All-India tax collections by the Income Tax department for the financial year 2019-2020 (between April 1 and September 10) stands at over Rs 3.07 lakh crore registering an overall growth of 6.1 per cent, which is being described by IT officials as satisfactory even though some of the regions have fared poorly in tax collections.
The Central Board of Direct Taxes (CBDT) had set an All India budgetary target of RS 13.8 lakh crore for the Income Tax department for the financial year 2019-20.
Among the south Indian states, Chennai and Kochi seemed to have fared well by recording a growth of 13.0 per cent and 13.4 per cent respectively while Hyderabad did well over Bengaluru by recording a growth of 9.8 per cent. The Bengaluru IT region fared poorly at - 1.5 per cent growth.
According to the note on the overall tax collections in the country, accessed by this newspaper, Mumbai region tops the list with a total net collection of Rs 82,378 crores when compared to Rs 74,457 crores (for the period April 1 to September 10) for the financial year 2018-19. It has registered a growth of 10.6 per cent. The total corporate tax was Rs 30,291.4 crores and Income tax was Rs 47,035.1 crores.
However, Delhi fared poorly with total net collections standing at Rs 45,668 crores when compared to Rs 52,151.6 crores the previous year with the growth percentage down by -12.4 per cent. Its corporate tax collection was Rs 22,346.1 crores and IT was Rs 23,352.8 crores.
The Hyderabad IT region, which comprises both Telangana and Andhra Pradesh, has recorded total net collections to the tune of Rs 18,450 crores as against Rs 16,801 crores the previous financial year (between April 1 and September 10). The corporate tax and Income Tax in Hyderabad region was Rs 7,275.6 crores and Rs 11,032.4 crores respectively.
Among other cities, Bengaluru IT region’s total net collection too was not up to the expectations as the figure stood at Rs 34,427.9 crores as against Rs 34,936.3 crores the previous year and the growth percentage recorded was - 1.5 per cent. The corporate tax was Rs 11,355.2 crores and Income Tax was Rs 17,706.7 crores.
When it comes to Chennai, the total net collections was Rs 23,635.8 crores while the figures the previous year was Rs 20,923.2 crores registering a growth of 13.0 per cent while Kochi which registered 13.4 per cent growth had its net collections at Rs 5,030.6 crores while the previous year it was Rs 4,436.9 crores.
In the All India figures, the Corporate tax collection was Rs 1.24 lakh crores while the Income Tax was Rs 1.77 lakh crores.
When asked if the economic slowdown could have ended up in some of the IT regions faring poorly, income tax officials said that the assessment of whether the slowdown had indeed impacted the Income Tax collections would be done based on the advance tax payments that would be done on September 15.
“If the businesses are running well, then it will indicate in the advance tax payments. There is every likelihood of those states, which have not done well, improving their performance in the months to come,” officials said.
