The prime minister was chairing his 21st meeting of Pro-Active Governance and Timely Implementation (PRAGATI), a monthly interaction with top officials of states through a vide conference.
Total direct and indirect tax collections at the end of January stood at Rs 12.85 lakh crore, 76 percent of the Rs 16.99 lakh crore target, as per revised estimate for 2016-17.
Considering the run up to Union Budget 2017, the expectations of â€˜feel-good‘ factors being featured in the budget proposals are pretty high. A few more tax and policy initiatives are required to shore up sentiments among investors, both domestic and foreign.
According to SBI's research report Ecowrap, the upcoming Budget is likely to see an increase in personal income tax exemption limit, increase in section 80C exemption limit, interest exemption on housing loan and and at least reducing (if not abolishing) the lock in period for bank fixed deposits.
S Naren likes the telecom space due to the current valuations for long-term. He also likes power industry, where he expects a 5-7 percent increase in power consumption in India every year.
Following Finance Minister Arun Jaitley's comments on direct and indirect taxes, economists have not changed their estimates for the tax collection. According to them, better performance on indirect taxes was expected due to the higher fuel excise hike.
Personal income tax collection up 24.6%; direct tax collected is 65.3 percent of the total budget estimate; refunds during April-December grew 30.5 percent
Dismissing concerns of slowdown due to demonetisation, Finance Minister Arun Jaitley today said both direct and indirect tax collections have shown robust increase during the April-December period, indicating uptick in economic activity including manufacturing.
Addressing the media, Finance Minister Arun Jaitley said in December 2016, service tax saw a rise of 14.2 percent. Central excise saw an improvement by 31.6 percent, but the custom duty declined to -6.3 percent on back of lower gold imports.
A closer look at the numbers and other reports over the last few days suggest that the figures could be a flash in the pan.
The mop up from indirect tax, which comprises customs, excise and service tax, in April-November period jumped 26.2 percent to Rs 7.53 lakh crore.
Direct tax collections by both Mumbai and Delhi zones of the Income Tax department were in single digit until December 24, a department official said.
Government's revenue collection in April to October saw indirect tax-mop up growing at an impressive 26.7 per cent while that of direct tax came in at 10.6 per cent.
Direct tax collections have soared 10.6 per cent in the first 7 months of current financial year on higher personal tax receipts.
Income tax mop-up from the metropolis remained flat during the first half of this fiscal at Rs 98,683 crore, primarily due to poor show by banking and pharma sectors as well as higher refunds.
Direct taxes, which include corporate income tax and personal income tax, collection in the first five months till August is 22.30 percent of Budget estimates for the full fiscal.
The numbers show that big banks are doing badly in comparison to the year-ago period, says Arun Giri of Tax-Sutra.
Government has collected Rs 5,54,179 crore from direct tax as on February 29 and Rs 5,69,056 crore from indirect tax as on January 31 this fiscal, Parliament was informed today.
While there have not been any sector specific major proposals or any significant reforms and while GST is still a dream, there is a visible shift in the tax regime towards long term stability and reliability.
Direct tax proposals from the Finance Minister did not seem to be major game changer
As per the Budget documents, the government estimates gross tax revenue of Rs 16,30,888 crore in 2016-17 against revised gross tax revenue of Rs 14,59,611 crore in the current fiscal year -- a growth of 11.73 percent.
Finance Minister Arun Jaitley unveiled a budget for the poor on Monday, announcing new rural aid and health programmes in a strategy shift that could boost his ruling party in coming state elections.
Finance minister shall be walking a tight rope to manage the fiscal austerity path. Though the chances of a slippage from the FRBM path are high, owing to 7th pay commission payouts, but these would to a certain extent get offset by higher revenues.
"Net (direct tax) collection was Rs 5.47 lakh crore as on February 13, 2016. This amount is 68.7 percent of the target of Rs 7.96 lakh crore," Central Board of Direct Taxes (CBDT) member Surabhi Sinha has said.
Motilal Oswal believes this deflationary trend is likely to continue in FY17 as well, thus impacting tax revenues once again