CBDT Predicts Govt To Cross Rs 22.07 Trillion Direct Tax Collection

The government is expected to surpass the Rs 22.07 trillion target for direct tax collections in the current fiscal year, according to Central Board of Direct Taxes (CBDT) Chairman Ravi Agarwal. Speaking to reporters on Monday, Agarwal expressed confidence in exceeding the set target, highlighting an increase in collections from both corporate and non-corporate taxes.

Agarwal also informed that taxpayers who have failed to disclose foreign income or assets in their Income Tax Returns (ITRs) for the fiscal year 2023-24 have until December 31 to file revised returns. The tax department is actively notifying such taxpayers through SMS and email, particularly those who have not declared high-value assets. "The basic intent is to remind taxpayers to declare the foreign assets. They can file a revised return by December 31," Agarwal said.

The CBDT's latest data reveals that direct tax collections have risen by 15.41 per cent from April 1 to November 10, reaching Rs 12.11 trillion. This figure includes Rs 5.10 trillion in corporate tax and Rs 6.62 trillion from non-corporate taxes, which encompass taxes paid by individuals, Hindu Undivided Families (HUFs), and firms. Additionally, the government has collected Rs 35,923 crore in Securities Transaction Tax (STT) during the period.
Agarwal also provided an update on the ongoing review of the Income Tax Act, which has seen over 6,000 suggestions from the public aimed at simplifying the law's language and improving its clarity. "We are hopeful and we believe that we will exceed the budget target for tax collection," Agarwal said, emphasizing the positive outlook on revenue growth.

The CBDT has invited suggestions from taxpayers regarding international best practices as part of its review process. This follows an initiative last month, where the CBDT’s internal committee sought public input for simplifying the six-decade-old Income Tax Act, focusing on reducing litigation, and compliance burdens, and eliminating obsolete provisions.

As part of the broader reform, the CBDT has established 22 specialized sub-committees to evaluate various aspects of the Act. This initiative is in line with Finance Minister Nirmala Sitharaman's Budget announcement for a comprehensive review of the Income Tax Act, aiming to make it clearer, and more concise, and reduce disputes and litigation, ultimately providing greater tax certainty for taxpayers.

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