Income tax department is expecting a shortfall of income tax collection by around 10 percent. The I-T department may garner Rs 10 to Rs 10.5 lakh crores, which is short compared to the revised target of Rs 11.7 lakh crores.
As on March 28, the department has collected Rs 9.84 lakh crores which is 84.26 percent of the total collection. A source in the department told Moneycontrol, "The department may reach around 90-92 percent of collection as compared to the revised target. Then, there will be a major shortfall in tax collection."
In the Mumbai circle which contributes the highest tax collection, approximately 33 percent of the total collection of income tax, is also showing a shortfall of 20 percent as of now.
As on March 28, Mumbai collected Rs 3.04 lakh crore whereas the revised target estimated is Rs 3.78 lakh crores.
In Mumbai, the shortfall stands at around 20 percent as of now, which may come down in the next three days.
A senior I-T official told Moneycontrol, "COVID-19 started in the last week of February and impacted major operations of Maharashtra from the first week itself. So, corporates have not come for advance tax due to the fear of projection of loss in this month. They may file tax at the time of income tax return".
Another source in the department told Moneycontrol, "We have to see that the economy is not doing well. Despite that, the department has increased refunds. In 2020, the department has given a refund of Rs 1.83 lakh crores which is higher by 14 percent as compared to 2019. Even in Mumbai itself, the refund amount increased by almost 25 percent".
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The Central Board of Direct Tax (CBDT) was expecting a major chunk of tax in Vivaad se Vishwas scheme. However, as of now, no big chunk of tax has been collected in this category. Now, the government has increased the timeline by three months as well.
Another senior official of income tax told Moneycontrol, "We are not expecting much tax collection in this scheme apart from the public sector undertaking tax collection."
The actual picture of tax collection will be clear on April 2.
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