The Central Board of Direct Taxes, working under the Union Finance Ministry, has stated that net direct collections grew to reach ₹4.89 trillion in the current fiscal (till the third week in October). The collections grew by a significant 15.7 per cent compared to the same period last year, as reported by Mint.
This will bolster the government’s efforts to achieve its ambitious collections target of ₹11.5 trillion for the fiscal ending 31 March 2019. The NDA government has already achieved 42% of its target. The current collection figures are significant because most taxpayers usually file their returns in the last quarter. It will not be surprising if the government surpasses its targets.
Senior officials also stated that about two crore refunds, for an amount of nearly ₹1.09 trillion were issued in the same period. While the number of taxpayers getting refunds increased by 62 per cent, the total amount of refunds issued was up by 31.7 per cent.
The Board said in July that it intends to add around 13 million new taxpayers in the current FY19. It is part of Modi govt’s objective of the widening of the tax base in the country. Also, with more income earners filing tax returns, black money will be curbed as paper trails can be easily established with returns.