The Centre’s gross (post-refunds) direct tax collections rose 68% on year and 27% over the corresponding period of pre-pandemic year FY20, to Rs6.93 lakh crore till November 23 of the current financial year, minister of state for finance Pankaj Chaudhary told Lok Sabha on Monday.
The collections were also aided by a 11% year-on-year decline in refunds at about Rs1.22 lakh crore till November 23 of FY22. The refunds were also 16% lower than Rs1.46 lakh crore during the period in FY20.
Direct tax collections prior to refunds till November 23 of FY22 rose 48% on year to Rs8.15 lakh crore; such collections in the period were 18% higher than the corresponding period in FY20.
The government’s post-refund direct collections are required to grow by 17% on year to achieve the FY22 budget target of Rs11.08 lakh crore. Going by the current trend, the collections for the full year would exceed the target by a significant margin, officials reckon.
Direct collections will get a further boost in the coming weeks from the updated Annual Information Statement (AIS) of taxpayers detailing their financial transactions, which could be used to make taxpayers to pay up.
On November 1, the Income Tax department has rolled out the new AIS on the compliance portal, which provides a comprehensive view of her transaction details to a taxpayer, with feedback facility.
AIS is more comprehensive than the earlier Form 26AS as it will contain more information about financial transactions of taxpayers beyond the TDS and TCS transactions.
Revenue department officials are of the view that a combination factors including a trend towards greater formalisation-and much better compliance were boosting the revenues.Internet Explorer Channel Network