INCOME TAX

FTS No.92812/2016-Ch(DT)

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF DIRECT TAXES

New Delhi,  05 February , 2016

To,

Dear Principal Chief Commissioner

Sub: Budget Collection

As you are all aware, we are in the last quarter of the current Financial Year. At this juncture, one needs to review what has already been achieved and what is still to be accomplished so as to usher in the new Financial Year with utmost satisfaction.

In the area of net direct tax collections, the present growth rate is not encouraging if compared with the preceding Financial Year. The net collections as on 31st January, 2016 stand at ₹ 5,21,853 crore indicating achievement of 65.40% of budget estimates with a growth rate of 10.87%. Looking at the overall minor head-wise growth rate, it is seen that except TDS all other minor heads are having a growth rate which is less than the growth rate of immediately preceding year at this time of the year. The main cause of concern in this regard is the decline in the regular tax collection which is showing a negative growth rate of (-)10.44% as compared to the corresponding growth of 17.25% last year. This suggests that either regular demand has not been raised due to non-completion of scrutiny assessments or adequate efforts are not being made to collect the arrear demand. This is being seen as a matter of concern by the Government. The Revenue Secretary also observed as under:

"The gross collection grew only by 8.13%. Chairman, CBDT needs to ask all Commissioners to achieve their target."

Whereas the scope of increasing collections under the minor heads of advance tax and self-assessment tax is rather limited, there is no justifications for a negative growth rate in respect of regular tax. I am sure that a large portion of the current demand raised during the current Financial Year would have fallen due by now and ready for collection. Therefore, our utmost focus for the next two months should be on collection of the collectible demand, both out of current and arrear demand.

I would urge you all to monitor this work, giving it highest priority, so that we are able to accomplish a healthy growth rate in collections particularly in regular tax which will also indicate positive efforts on the part of the Department.

(Atulesh Jindal)

Chairperson, CBDT &

Special Secretary to the Govt. of India