A direct reduction of direct tax collection from Mumbai by 13%

Mumbai, Ta. January 21, 2020, Tuesday

After the decline in December, direct tax collection from the country's economic capital, Mumbai, also declined in mid-January. For the first time in the last decade, it has been observed that the direct tax collection from Mumbai area has doubled.

As of January 1, direct tax collection from Mumbai has dropped by 5%. In December, the recovery was reduced by 5%. Mumbai accounts for 5% of the total direct tax collection.

If the current fiscal is to achieve a target of Rs 1 trillion a year, the revenue tax department will still have to collect another Rs 5 trillion in the remaining two months. In the current financial year, the direct tax collection has not even crossed Rs 9 trillion.

Given this reduction, the Central Board of Direct Taxes has begun issuing special instructions to departmental offices, the source said. It is also instructed to check whether the amount of TDS deducted in the property deals is paid.

As of December, the direct tax collection from Mumbai was Rs 1.8 trillion, which is 5% less than last year. After the refunds were issued by the Income Tax Department on December 5, the decline has risen to double the debt by 5%.

Since Mumbai is an economic capital, the reduction in tax collection from here is a concern, ”said an official in the income tax department. In the coming budget, big steps can be taken in this regard.

As of December 7, the recovery of direct taxes was Rs. 3.2 trillion after refunds. The economic downturn has hit the government's revenue for the current fiscal year. Sources said the government is worried about the fiscal deficit rising even as revenue declines.