Income Tax Department Recovers

Certainly! Here’s a breakdown of the provided information along with some key points:

Recovery of Pending Dues: The Income Tax Department successfully recovered Rs 73,500 crore in pending dues for the financial year 2023-24 up to March 15, 2024.

This marks a significant increase compared to the previous financial year’s collection of over Rs 52,000 crore.

1. Composition of Recovered Amount:

   • Corporate tax dues amounted to Rs 56,000 crore.

   • Personal income tax constituted Rs 16,500 crore.

   • Undisclosed income from foreign assets accounted for Rs 50 crore.

2. Focused Recovery Plan: The accomplishment is part of a focused recovery plan aimed at enhancing the collection of outstanding tax arrears.

3. Increase in Collection: The collection has seen a notable increase compared to previous years. It averaged eight per cent of the annual outstanding until 2021-22, rose to 10.78 per cent in 2022-23, and has reached approximately 17 per cent in the current financial year.

4. Concerns Over Pending Tax Arrears: Pending tax arrears have been a primary concern for the tax department. The arrears surpassed Rs 21.94 trillion as of January 31, 2023, up from Rs 15 trillion in April 2021.

5. Efforts to Ensure Accuracy: Efforts are underway to update the database to ensure accuracy, particularly in cases where taxes were paid but not reflected in the system.

   These actions align with the department’s commitment to enhancing taxpayer services and maintaining the integrity of the taxation regime.

1. Interview with Revenue Secretary Sanjay Malhotra:

   • Continuity in Taxation Regime: Malhotra highlighted the continuity in the taxation regime.

   • Buoyancy in Personal Income Tax: There has been substantial buoyancy in personal income tax, attributed to the benefits provided to taxpayers in recent years.

   • Government’s Commitment to Improving Taxpayer Services: The government is committed to improving taxpayer services, focusing on rationalization, simplification, and trust-based taxation.

   • Non-Extension of Concessional Tax Regime for Corporates: The concessional tax regime for corporates was not extended beyond March 31, 2024.

   • Malhotra clarified that companies were given ample time to avail of the benefits and that the existing taxation rate of 22 per cent for corporates is reasonable considering the size of the economy.https://www.instagram.com/fintaxbytes/

Overall, the increased recovery of pending dues, coupled with efforts to enhance taxpayer services and maintain tax integrity, reflects the government’s commitment to fiscal responsibility and effective tax administration.