Government’s direct tax mop-up is set to miss the revised target for the 2014-15 fiscal as the collection so far has been only about Rs 6,30,000 crore, an I-T department official said.
Keeping in view of the sluggish rise in collection, the government had revised downwards its target at Rs 7,05,000 crore for the current fiscal, after initially having budgeted Rs 7,36,000 crore in the direct tax mop-up.
The department may not be able to achieve even the revised target, the official said, adding as on March 24 the department had collected only Rs 6,30,000 crore from across the country, up Rs 5,83,000 crore during the corresponding period last fiscal, thus showing a growth of 8.2 percent.
Mumbai continued to be the largest centre for income tax collection and mopped up Rs 1,99,426 crore so far, which is higher by 10.9 percent when compared to the mark of Rs 1,79,763 crore during the corresponding period last fiscal.
The I-T Department has a target to mop up Rs 2.30 trillion from Mumbai this fiscal out of the direct tax collection target of Rs 7.04 trillion for FY15.
The Delhi circle collected Rs 96,722 crore as against Rs 86,619 crore during the corresponding period last fiscal, registering a growth of 11.7 per cent, the official said.
The official blamed the likelihood of lower than projected target of direct tax collection to certain sectors like manufacturing which have not been able to do well in the sluggish country’s economic growth.
The sluggish collections come even as many large corporate paid higher advance tax this fiscal, and especially in the fourth quarter.
While the nation’s largest lender State Bank of India has reportedly paid 23 percent more in advance tax at about Rs 1,794 crore for the March quarter compared to around Rs 1,456 crore a year-ago, LIC has paid Rs 1,470 crore, an increase of 15 percent over Rs 1,280 in the same period last year.