Black money: We can't make details of Indian account holders public, says Pranab - The Times of India

Black money: We can't make details of Indian account holders public, says Pranab - The Times of India:

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GOVT MAY FACE RS. 25,000-CRORE DIRECT TAX SHORTFALL IN 2011-12

It is a staggering amount staring at the government: a possible Rs.25,000crore shortfall in the direct tax collection from the Budget target in the current financial year. A comparison of the direct tax mop-up trend during the first eight months of the financial year with the previous two years’ clearly indicate that the net direct tax collection in 2011-12 would be around Rs.5,00,000 crore as against the Budget target of Rs.5,32,651 crore, according to a senior revenue department official. “As per the calculations made by the department, at least 50 per cent of the Budget target should have been collected by November. But it is only 44 per cent,” he says. “The realisation made during this period gets doubled in the last four months of the financial year.” The official explains that the gross tax collection till November in the current financial year stood at around Rs.3,05,000 crore. This should get doubled to about Rs.6,10,000 crore so as to meet expectations. As the refunds in the current financial year is expected to be around Rs.1,05,000 crore, net direct tax mop-up would be around Rs.5,05,000 crore in the current scenario, he said. The official stresses that the Central Board of Direct Taxes (CBDT) is trying its “level best” to meet the Budget target of Rs.5,32,651 crore, but the current trend is “clearly hinting” towards a shortfall of Rs.25,000 crore. The net direct tax realisation during April-November last year was at Rs.2,16,628 crorse. The figure meant that authorities had crossed 50 per cent of the Budget target of Rs.4,30,000 crore. As for 2009-10, the net direct tax mop-up in the pertinent period was at Rs.1,83,822 crore; this was also around half the Budget target of Rs.3,70,000 crore. In the current financial year, however, it has been Rs.2,35,333 crore, which is 44.2 per cent of the Budget target of Rs.5,32,651 crore. The refunds during April-November have been close to Rs.70,000 crore. Another revenue department official says there is more to the problem. For, the initial indication of direct tax mop-up in December was itself not encouraging. This is significant, as the CBDT is pinning hopes on the third instalment of advance tax collection due on December 15. This, when the government is already reeling under pressure due to a likely shortfall in disinvestment and telecom spectrum revenue targets on the one side and a ballooning petroleum and fertiliser subsidy bill on the other. Thus, the impending slippage on the direct tax front is set to add to its woes in keeping the overshooting of the fiscal deficit target of 4.6 per cent of the GDP to minimum. Analysts and tax experts feel the CBDT will resort to measures including stepping up the investigation process and now initiate search and seizure operations. “The objective,” notes an expert, “will be to collect immediate revenue.” Income tax department officials say their office, keeping in mind the sluggish tax collection situation, has already initiated measures to increase the revenue realisation. These include the monitoring of advance tax payments of top cases and assigning quarterly targets for disposal of pending cases for early recovery of demands. “We are using all the information available with the department,” reveals an official. “They have been accumulated from various sources, including ones received from abroad to identify tax evasion. The idea is to collect as much as possible, so that at least the Budget target could be met.”

 - www.business-standard.com

GOVT LIKELY TO MISS DIRECT TAX COLLECTION TARGET

The economic slowdown is likely to take a toll on meeting the Budget estimate target of direct tax collections in the current fiscal. “Not at all. How can I be confident (of meeting the Budget estimate) when there is a slowdown? It will be difficult...now advance tax will come, let’s see what happens in the next instalment,” the CBDT Chairman, Mr M.C. Joshi, told PTI on the sidelines of an international tax conference here today. The Finance Ministry had in October revised the Budget estimate of direct tax collections upwards by Rs 53,000 crore to Rs 5,85,000 crore. The revision was intended to bridge the shortfall that might occur due to reduction in customs duty on crude oil to offset the price rise. Net direct tax collections rose 8.63 per cent during the first eight months (April-November) of the current fiscal. “Now the growth rate is 8 to 9 per cent compared to last year. To breach the target, you need a growth rate of 27 per cent (in direct tax collection). We are not comfortable...,” he said. The Income-Tax Department has been able to achieve only 44 per cent of the Budget estimate till now, a senior official said earlier this week. Net direct tax collections grew 8.63 per cent to Rs 2,35,333 crore during the first eight months of this fiscal. It stood at Rs 2,16,628 crore in the same period of the previous fiscal, according to official sources. The Income-Tax Department provided refunds to the tune of Rs 68,669 crore during the period against Rs 37,640 crore in the corresponding period last year. On whether additional steps were being taken to meet the target, Mr Joshi said: “We are utilising information better. We are looking at the corporate sector, the top 3,000 companies as of now. They generate 70 per cent of our revenue. Looking at them, how they are working...” Gross corporate tax collections were up 19.61 per cent at Rs 1,99,317 crore during April-November against Rs 1,66,638 crore in the same period last year, the sources said. Similarly, net personal income-tax was up 14 per cent at Rs 88,567 crore.

 - www.thehindubusinessline.com