Direct Tax Collections Plunge for FY 2019-20 As Economic Crisis Deepens, Revenue Slumps to Rs 7.4 Lakh Crore Against Estimated Rs 11.4 Lakh Crore
After three days of Union Budget 2020 presented in parliament, reports are coming that the Direct Tax Collections from April 2019 to February 03, 2020 stood at Rs 7.40 lakh crore versus the revised budget estimates of Rs 11.70 lakh crore. Earlier in January, the data revealed that tax collection fell by (-) 6.1% between April to January 15 of FY 2019-20.
New Delhi, February 4: After three days of Union Budget 2020 presented in parliament, reports are coming that the Direct tax collections from April 2019 to February 03, 2020 stands at Rs 7.40 lakh crore versus the revised budget estimates of Rs 11.70 lakh crore. Earlier in January 2020, the data revealed that tax collection fell by (-) 6.1 percent between April to January 15 of FY 2019-20.
With new data in place, reported by CNBC TV18, the officials in the North Block opine that these new calculations and estimates have evolved after 'realistic assessment' of various economic factors were revised. It is to be known that there are 4,83,000 direct tax pending cases in various appellate forums. In order to resolve the issue, Finance Minister Nirmala Sitharaman during her Budget 2021 speech proposed that taxpayers should pay only the amount of the disputed taxes. She also made it clear that the government might give waiver of interest and penalty, provided taxpayers make payment by March 31, 2020. Union Budget 2020-21 Highlights: FM Nirmala Sitharaman Announces New Income Tax Slabs But With Riders, Allocates Rs 2.83 Lakh Crore For Agriculture and Rs 69,000 for Healthcare; Here Are All Updates.
Also, Union Finance Minister Nirmala Sitharaman on February 1, 2020, announced the removal of direct distribution tax. She also said, "To make sure India stays a favoured destination for investments, tax rate for existing companies brought down to 22%. New companies, tax rate reduced to 15%." Apart from this, the Union Minister pegged the nominal GDP growth rate for FY 2020-21 pegged at 10 percent and added that the Revenue Expenditure for FY 20 at Rs 26.99 lakh crore, receipts at Rs 19.32 lakh crore.
Earlier in July 5, 2019, budget speech, the FM had mentioned a direct tax collections target of Rs 13.35 lakh crore for FY 19-20. However, the tax collection stood at Rs 7.26 lakh crore against Rs 7.73 lakh crore on Y-o-Y (year-on-year) basis. The negative growth in that period reflected the negative growth, opine experts.
With economic slowdown prevailing in the country, Sitharaman announced the decrease of corporate tax rate for new companies in the manufacturing sector to 15 percent and for the existing companies. Due to this the rate was brought down to 22 percent in September 2019. Based on the definition, a direct tax is paid directly by an individual or organisation to the government, which includes income tax, property tax, corporate tax, etc.
(The above story first appeared on LatestLY on Feb 04, 2020 09:33 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).