New Delhi: With the number of tax payees touching 30 million, income tax collections are likely to be up by as much as Rs 5,000 crore.
While revenue collections through personal Income-tax to Finance Ministry are likely to rise by Rs 5060 crore in fiscal 2007-08 to touch Rs 87570 crore from Rs 82510 crore in previous year, number of income-tax payees in the period will jump by 5 million from 25 million to 30 million, according to estimates released by industry chamber Assocham.
Likewise, the chamber has projected a 44.7% hike in IT collection amount for Finance Ministry by 2010 which means collections will rise to Rs 119443 crore with number of tax payees exceeding over 45 million.
The reason for projected growth both in terms of income-tax volumes and number of income tax payees for 2007-08 and thereafter would be mainly on account of rising levels of income which will widen the tax base and voluntary compliance of income-tax payment, arising out of awakening factor as also fear psychosis because of strict monitoring that will follow from authorities concerned.
Projections for 2015 income tax revenue generation would be three times more from the level of 2006-07 to touch Rs 259522 crore as the chamber expects a new income-tax code in place in next few years which will further simplify procedures, reduce bureaucratic encumbrances and make income tax collection methods much more simpler for income-tax payees to honour their constitutional obligation.
Share of income-tax in the tax revenue to the government had already shot up from 10% to 17% in the last 15 years during the period since the procedures and hassles for income-tax collections was not that simple, according to president Mr Venugopal Dhoot. He also pointed out that in future with the use of simplified procedures, number of income-tax payees would rise and touch a projected level of 45 million in next 3 years.
Reasons for higher IT collections
* Openness in the administrative system
* Greater transparency
* Higher employment opportunities
* Widening of service tax base contributing roughly over 54% to national GDP.