The total direct tax evaluation during the April-November period of the current fiscal is raised to15.7 per cent to 6.75 Lakh Crore INR. In a statement, the Finance Ministry informed that during the same period of the current financial year, a refund of 1.23 Lakh Crore rupees was done.
This is 20.8 per cent more than the refund issued during the same period of last fiscal year. According to initial data, during the April-November period of the current fiscal year, the gross direct tax collection has increased by 15.7 per cent. It is compared to the same period of last fiscal year to 6.75 lakh Crore INR.
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What is the target of the coming years?
It is noteworthy that from 2018-19, a target of direct tax collection of 11.50 Lakh Crore has been set in the budget. Approximately the gross direct tax accumulation is equal to 50 per cent of the entire budget amount. Gross collection of corporate income tax and personal income tax in the review period is 17.7 per cent and 18 respectively. However, it has increased by 3 per cent. After accounting for the refund, a net increase of 18.4 per cent in corporate income tax collection and a net increase of 16 per cent in private income tax collection were recorded. The Ministry of Finance clarified that the income tax collection during the same period of last financial year is also included in the disclosures made under the Announcement Plan 2016. Its third and final instalment is 10,833 Crore INR. This is not included in the current financial year's collection.
The Situation Right Now
The financial department has confirmed that despite a 50 per cent increase in income tax returns compared to the previous year, only 15.7 per cent increase in direct tax collection has been recorded. In an official statement, the financial department-issued press release and claimed that out of the total tax collection, a refund of 1.23 Lakh Crore rupees was released during April-November. This is 21.8 per cent higher than the refund issued during the same period last year. According to the statement, during the period April-November the total collection (after adjusting the reimbursement) was 5.51 Lakh Crore with an increase of 14.7 per cent. The whole direct tax collection in the direct tax collection fiscal year 2019 is 48 per cent of 11.5 lakh Crore.
According to the statement, corporate income tax increased by 17.7 per cent and private income tax collection is increased by 16 per cent. On their previous release, the CBDT claimed that more than seven Croce tax returns had been filled up for the year 2018-2019. It has increased by 50 per cent compared to the previous year.In the first half of the current financial year, the total direct tax collection grew by 16.7% to 5.47 Lakh Crore INR. The Finance Ministry gave its information that during the first six months, 2.04 Lakh Crore were returned to taxpayers. It is 32.5% greater than the net figure that was replaced last year in the same period. Net tax collection after the amount returned to taxpayers has increased by 14% during this period to 4.44 lakh Crore INR.
Behind the Target Despite Growth
In the Budget, a mark of direct tax collection of 11.50 Lakh Crore was made for the current financial year. In the first half, only 38.6% of the target has been collected. Composite corporate income tax and personal income tax collections increased by 19.5% and 19.1% respectively during this period. After returning the sum, their net collection grew by 18.7% and 14.9% respectively. For the fiscal year 2017-18, the Direct Taxes Collection has crossed the set targets. Officials said on Monday that during this time, record 6.84 Crore income tax returns were filed.
During the last financial year, the total direct tax collection stood at 9.95 Lakh Cores which is more than 9.80 Lakh Crore from the revised budget estimates. The Chairman of the Central Board of Direct Taxes said that during the reporting fiscal, 6.84 Crore income tax returns had been filed. 5.43 Crore income tax returns were recorded during the financial year 2016-17. During this time, 99.5 lakh new taxpayers were involved in the tax scope.
Conclusion: The GST effect on the tax year 2018-19
Finance Secretary said that the GST collection in March was 89,264 Crore INR. It is believed that so far 17,616 Crore INR has been refunded in GST. The Finance Secretary said that the electronic e-bill had started successfully. There is no problem in this so now. Within the state, the announcement to begin e-way bills for freight will be announced soon. You must know that Karnataka was the only state which had implemented the e-bill for freight traffic from April 1, in addition to the internal state.