Saturday, October 15, 2011

Finance Ministry revised the Budget Estimate of Direct Tax Collection Upwards to Rs 5.85 lakh crore

The finance ministry in October 2011 revised the Budget estimate of direct tax collection upwards by Rs 53000 crore to Rs 5.85 lakh crore. The higher target marked an increase of 31% over last year’s collection of Rs 4.46 lakh crore. The Budget estimate of direct tax collection was revised upwards to bridge the shortfall that might occur due to reduction in customs duty on crude oil to offset price rise.

The growth in net direct tax collection in the April-September 2011 period was only 7% or Rs 1.94 lakh crore. But the overall gross collection rose by 23% to Rs 2.57 lakh crore. The collection was 36% of the budget estimates of Rs 5.32 lakh crore for 2011-12.

CBDT officials opined that the government will have to move fast on increasing the strength of the department. There are 1,200 posts of additional commissioners, considered the backbone of tax collection, of which there are at least 600 vacancies.

 CBDT created several new investigative departments, including a Directorate of Criminal Investigation with the mandate of inducting a marine and armed unit to tackle white-collar crimes and deal with tax evaders even on foreign shores.

CBDT’s request to enhance the manpower was personally vetted by finance minister Pranab Mukherjee and the file was moved to DoPT for final approval.

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