The Finance Ministry has come out with a list of sectors that the taxman would do well to focus upon this fiscal to garner additional tax revenues.
The sectors that are likely to do well this fiscal are consumer goods, software, two-wheelers, cement, some banks, steel, power and oil marketing companies, fertilisers, auto four wheelers and pharma, Mr R.S. Gujral, Finance Secretary, said at the 28th Annual Conference of Chief Commissioners and Directors General of Income-Tax in the Capital.
They have been identified on the basis of an internal analysis of the advance tax payment trends of the top 100 companies, he said.
Mr Gujral felt that the current fiscal's direct taxes target of Rs 5.7 lakh crore, reflecting a 15 per cent increase over previous year's actual collections, was a “not unachievable or difficult” target.
The Finance Secretary also expects iron ore, capital goods and aluminium companies to continue with their poor show, indicating that the taxman may not get sizeable tax revenues from companies in these sectors.
As for 2011-12, Mr Gujral highlighted banks (2-3 paid lower advance tax), steel (all companies paid lower advance tax), power (most paid lower advance tax), coal (half of them paid lower advance tax), oil marketing companies (steep decline in advance tax) and capital goods as extremely stressed sectors.
But there was buoyancy in software, oil and gas exploration, two-wheelers, cement and infrastructure in 2011-12, he said.
As for refunds, Mr Gujral said he does not anticipate refunds this fiscal to reach the level of Rs 95,000 crore seen last year.
On Direct Taxes Code, Mr Gujral said that the revised Bill would be introduced in the monsoon session of Parliament.