Tax kitty shows shortfall of 35 per cent, officials told to act fast

Alarm bells have rung in the finance ministry after net direct tax collections are showing a 35 per cent shortfall with only two months left for closing of the financial year.

Concerned over this, the CBDT has written to the income-tax department to pull up its socks and step up the drive for collection of revenue.

In an urgent missive to the top brass of the department in the country, the board has asked them to give their “highest priority” to get as much as they can on the regular tax front as the tax collection has shrunk by 10.44 per cent as compared to 17.25 per cent growth last year.

While the target for direct taxes collection this fiscal is Rs 7.98 lakh crore, the department has made a net collection of about Rs 5.21 lakh crore by January 31, thereby falling short, at present, by over 35 per cent to reach the target.

In his first general communication to the department, newly appointed Central Board of Direct Taxes chairman Atulesh Jindal asked the department to tighten their belts after revenue secretary Hasmukh Adhia raised a similar concern in a meeting recently.

“The gross collection grew only by 8.13 per cent. The CBDT chairman needs to ask all commissioners to achieve their target,” Mr Jindal wrote to his Principal Chief Commissioners quoting Mr Adhia.