New Delhi: With growth momentum in corporate and personal tax collections continuing, the Income Tax department hopes to close the financial year with the direct tax mop-up crossing Rs3,10,000 crore.
The direct tax collections have already crossed the Rs3,00,000-crore mark for the first time. “The internal target is now to collect anywhere between Rs3,10,000 crore and Rs3,20,000 crore,” said a source.
The final figures would be available only by April-end as the banks may take time to collate the tax collections.
The Reserve Bank has instructed the banks to remain open till late hours on the last day of financial year to accept tax receipts.
In his Budget, Finance minister P Chidambaram revised upwards the direct tax target to Rs3,05,000 crore from an earlier estimate of Rs2,67,490 crore for 2007-08, while indirect tax target was kept almost at the same level of Rs2,78,000 crore.
Notably, the tax deduction at source (TDS) has grown by over 50% this year and it is expected to contribute around 35%, against 28-29% last fiscal, to the total direct tax collection.
The department is expecting a collection of around Rs10,000 crore from the tax deduction at source by 31 March.
In addition, another Rs3,000 crore to Rs4,000 crore is expected to be deposited with the state exchequer on the last date as taxes from States and different ministers.
From the regular self-assessment of tax returns, and notices sent to corporates and individual tax payers, the department is expecting another Rs5,000 crore.
Official sources said the revised target of about Rs5,83,000 crore total tax collections, including indirect taxes such as customs, excise and service tax for 2007-08, is likely to be surpassed though there may be a slight shortfall in excise duty collections against revised target due to lowering of duties in the Budget.
At the end of February, the direct taxes, including corporate tax and personal income tax, grew by over 40% and stood at Rs2,32,676 crore.
The advance tax collections from the corporate sector and personal income tax, growing at around 40%, have so far far touched Rs60,000 crore this month.
Among others, the public sector oil giant ONGC deposited Rs8,305 crore as advance taxes this year against Rs7,992 crore, followed by State Bank of India which contributed Rs4,063 crore to the state kitty against Rs2,774 crore last fiscal.
Oil marketing giant Indian Oil deposited Rs3,069 crore against meagre Rs855.8 crore last fiscal, belying apprehensions of any adverse impact of rise in international crude oil prices on its balance sheet.
In certain sectors like insurance, real estate, media and mining, advance tax collections have grown by even 100- 300%.
Meeting revised tax targets is crucial for the government to to fund its extra spending of over Rs43,000 crore for 2007-08 while meeting the fiscal and revenue deficit target, analysts said.