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Close on heels of the Modi government winning a thumping victory in the Parliamentary elections, the Central Board of Direct Taxes (CBDT) sprang into activity on Friday and set a fresh income-tax revenue collection target for the current fiscal year, aiming to garner 20 per cent more than in the previous year.
The target for the current fiscal has been set at ₹13.80 lakh crore. For 2018-19, the target was ₹11.50 lakh crore. The CBDT, in consultation with the Department of Revenue, North Block, has set the new target.
The principal chief commissioners of income tax in 18 major revenue regions have been updated about the target.
Target for Mumbai
For the Mumbai region, which is the highest revenue earner in the whole country, the total targeted tax collection has been set at ₹4,39,773 crore, which is 18.60 per cent higher than the ₹3,70,800 crore target set in the previous fiscal year.
The Finance Ministry believes that the Mumbai region should chase a higher tax collection from the corporate sector.Therefore, the corporate tax collection target has been upped by 16.4 per cent to ₹2,76,671 crore against ₹2,37,666 crore in the previous fiscal year.
The target for personal tax collection has been set even higher at 22.92 per cent to ₹1,50,302 crore, while in the previous fiscal the target was ₹1,22,268 crore.
On the other hand, security transaction tax target has been enhanced by 17.80 per cent to ₹12,800 crore against the previous year’s ₹10,865 crore.
A communication from the Department of Revenue, which has been reviewed by BusinessLine , said that the targets have been fixed keeping in mind the revenue potential, which is based on the weighted average growth rate of net collection of the last three years.
The highest importance has been given to the net collection of the 2018-19 fiscal year. Factors significantly affecting the revenue potential of a particular region has been taken into account while setting the targets, to make the process reasonable and equitable, the communication said.
For New Delhi
For the New Delhi region, which is the second-highest IT revenue earner, the total target has been increased by a whopping 31.32 per cent to ₹1,97,891 crore. In fiscal year 2018-19, the target was ₹1,50,686 crore.
A senior I-T official told BusinessLine that the target for the National Capital has been set higher given its potential for more revenue collection.
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