The total direct tax collection stood at Rs 9.45 lakh crore in FY 2020-21, which is five per cent more than the revised estimate in the budget. Central Board of Direct Taxes (CBDT) Chairman PC Modi said on Friday that the Income Tax Department has collected more tax than the revised estimates despite issuing adequate refunds in FY 2020-21. This was a 42 percent increase over the previous year in issuing refunds. The finance ministry said in a statement that despite the challenges of the Kovid-19 pandemic, net direct tax collections witnessed a significant boom. The gross direct tax collection in the last financial year was Rs 12.06 lakh crore. After giving Rs 2.61 lakh crore as refund, the net gross direct tax collection stood at Rs 9.45 lakh crore.
4.57 lakh crore net corporate tax collection
Net corporate tax collection during the financial year was Rs 4.57 lakh crore, while net personal income tax stood at Rs 4.71 lakh crore. Apart from this, Rs 16,927 crore was received from Securities Transaction Tax (STT). According to the revised estimates of the general budget, a target of Rs 9.05 lakh crore as direct tax collection was set for 2020-21.
Five percent higher than the revised estimates
Thus tax collection was five per cent higher than the revised estimates, but 10 per cent less than the target set for 2019-20. Modi said that the department has taken several measures to reduce the burden of paperwork and provide better taxpayer services, the effect of which was reflected in the tax collections of the last financial year.
Objective to implement ‘honest-transparent taxation’
Modi said, “We want the whole system to be more fair and transparent. The basic theme that we are working on is’ Implementing honest-transparent taxation … which gives me confidence in spite of hard times that we will be able to meet the current goals as well. He further said that about 54,000 crore rupees have been resolved so far under the trust scheme from the dispute. The last date for payment under this scheme is 30 April.
He said, “One-third of the disputes have been resolved under this scheme. I do not think there is any need for any other such scheme. In response to a question about bringing corporate taxes once again under the global minimum tax regime, Modi said that the government has already reduced corporate taxes.
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