New Delhi: The CBDT has directed income-tax officers to “closely” monitor prime advance tax payers and determine bogus claims of exemptions and deductions as a part of the technique to enhance direct tax collections in the course of the present monetary 12 months.
CBDT has instructed IT officers to observe prime advance taxpayers to spice up direct tax collections this monetary 12 months(Pixabay/Representational picture)
Official sources instructed PTI that the Central Board of Direct Taxes, the policy-making physique for the division, had lately issued the central motion plan (CAP) for 2025-26 that acts because the guiding gentle to steer ‘key efficiency areas’ for the division vis-a-vis income assortment work.
The Union authorities has set a goal of ₹25.20 lakh crore for the I-T division beneath the direct taxes head for the present fiscal, as per the Funds estimates offered in February.
The sum consists of ₹10,82,000 crore beneath the company tax head, ₹13,60,000 crore beneath non-corporate taxes that features private revenue tax and others, and ₹78,000 crore from securities transaction tax (STT).
The web direct tax assortment for the 2024-25 FY narrowly missed the goal, rising 13.57 per cent to over ₹22.26 lakh crore, owing to issuance of the highest-ever quantity of refunds issued, official information revealed.
The federal government had set a goal of ₹22,07,000 crore for the direct tax administration as per the price range receipt of July 2024 and revised it to ₹22,37,000 crore in the course of the price range offered in February.
The CAP has advised the I-T division undertake a “sectoral analysis” for higher tax assortment by addressing “negative” tendencies of tax funds, a supply mentioned.
The plan has additionally sought “close” monitoring of prime advance tax payers, together with people and corporations, and “encourage” them to reassess their advance tax liabilities if required, the individual mentioned.
Advance tax is the tax quantity paid upfront by means of instalments in a monetary 12 months. It facilitates easy tax assortment for the federal government whereas stopping taxpayers from a lump sum tax burden on the year-end.
The division has additionally been requested to “identify” incorrect claims of exemptions and deductions that result in lack of real income, the supply mentioned.
The CAP additionally advisable “profiling” of sure districts or areas for internet constructive or unfavorable revenues and in instances the place the income is just not up to speed, to take “suitable action.”
The division has been requested to position “special emphasis” on gathering arrear and present demand and take motion in case of “non-compliant” tax payers.
It has additionally been requested to deal with assortment of tax demand confirmed by the workplace of Commissioner of Revenue Tax (Appeals), the primary appellate mechanism within the direct tax system out there to taxpayers adopted by varied courts, excessive courts and the Supreme Courtroom.
In accordance with the official information, the CIT (Appeals) confirmed calls for price ₹1.95 lakh crore within the 2024-25 fiscal and the assessing officers have been requested to make “all possible” efforts to gather this income throughout the present monetary 12 months.
The CAP has additionally requested the tax division to conduct “outreach” programmes and improve consciousness among the many taxpayers about right claims for deductions and exemptions, and in addition educate them on submitting up to date Revenue Tax Returns — a provision that enables a sure time frame to those that missed reporting right revenue, the supply mentioned.
These efforts stand to “potentially” lead to important enhance in taxpayers choosing the brand new tax regime, the place no deductions or exemptions are allowed towards a flat charge of tax, thus lowering the misuse of deductions, the supply mentioned.
The tax division has additionally been requested to concern “prompt” refunds in order that curiosity funds and “negative impact” on the general Funds might be “avoided.”
The division, as per information, issued the highest-ever refunds, ₹4,76,743 crore, in the course of the 2024-25 fiscal — a rise of 26.04 per cent as in comparison with the ₹3,78,255 crore issued in refunds in the course of the 2023-24 fiscal.
The motion plan additionally underlined the “steep rise” in arrear calls for and has mentioned that this stays a “focus” space for the division. It mentioned that the arrear demand at current stands at ₹48,17,763 crore and the division ought to make efforts to scale back the quantity to a “manageable” degree.