Reforms in I-T Dept resulted in record collection: CBDT chief

By Trend

Reforms undertaken by the government within the Income Tax department and the “strengthening” of the Indian economy are among the major factors that led to the highest-ever direct tax collections in the country, which stand at over Rs 13.63 lakh crore, CBDT Chairman JB Mohapatra has said, Trend reports citing The Tribune.

He said apprehensions about the state of the economy, battered by the Covid spread, were belied as it “did so well and the corporates came out so well (in paying taxes)” during the current financial year 2021-22.

Mohapatra exuded confidence that the direct tax mop up, which primarily includes personal income tax and corporation tax revenue receipts, will continue its present streak and the department will be able to successfully chase the target of collecting Rs 14.20 lakh crore in taxes in the next fiscal.

The Central Board of Direct Taxes (CBDT) is the administrative body for the I-T department and according to its March 17 announcement, direct tax collections (as on March 16) in India broke all previous records.

The CBDT chief listed the reasons that he believes led to the record collections. “First is the strengthening of the Indian economy. The better the economy, the better is the tax mop up, which is happening right now. Second reason will be the reforms undertaken across departments having an effect on the tax department’s own collection numbers,” he said.

There are policy measures that have been taken over a period of time, in the budget or outside the budget, and are now giving the “rebound effect” or dividends, Mohapatra said. “The third reason, I would say, will be the reforms within the department... which have been continuous in the last four years,” he said.