Direct tax target may be scaled down in Budget
The direct tax target of Rs 13.80 lakh crore for the current fiscal may be scaled down in the regular Budget to be announced after the formation of the new government at the Centre, a source said.
“The Department of Revenue may pitch for lowering the current target of Rs 13.80 crore in the Budget. It is difficult to grow 21 per cent (over the actual revised direct tax collections of Rs 11.4 lakh crore). The current target is a huge order to be filled. In the last fiscal, a target of Rs 12 lakh crore could not be accomplished,” said the source. The quantum of reduction could be discussed, it added.
The Interim Budget in February estimated to collect Rs 13.80 lakh crore in direct taxes, including corporate tax and personal income tax, compared to Rs 12 lakh crore in the last fiscal — representing a growth of 15 per cent.
But the Rs 12 lakh crore target could not be fulfilled due to sluggish personal income tax collectionwhich fell short by Rs 50,000 crore. The original direct tax target for 2018-19 was Rs 11.5 lakh crore, which was later increased to Rs 12 lakh crore.
The revised target for the current fiscal would be discussed and detailed before it makes it to the final print of the general Budget in July this year.
The source said that revenue targets are set by the Department of Revenue in consultation with the Budget division of the Economic Affairs Department.
At the time of the Interim Budget, Revenue Secretary A.B. Pandey had said that Rs 13.80 lakh crore was a ‘realistic’ target for the current fiscal.
Source: internet only heading has been changed.