National As Well As Financial Capital? Delhi Closes Gap With Mumbai In Income Tax Collections

According to government data, Income Tax (IT) collections in Delhi rose by over 45 per cent, in the period between April and mid-November of this year (2018) as compared to last year, as reported by Economic Times (ET). However, collections only increased by 5 per cent in Mumbai in the same period.

Though Mumbai accounts for around 29 per cent of the total income tax collections in the country, Delhi has improved its prospects. Now it contributes 16.5 per cent to the nation’s coffers. This marks a jump of over five per cent jump in a single year.

An official with the IT department stated the reason behind lacking performance of Mumbai as the hefty tax refunds. “The department has been proactive in paying refunds across the country. But the number should be seen in the context of refunds paid out in Mumbai, which have been quite high,” said an official, without revealing any details.

It should also be noted that Delhi’s 45 per cent increase in income tax collections has been substantially higher than that of smaller cities like Chennai and Kolkata.

This year has been particularly good for the IT department. Over six crore income tax returns have been filed across the country so far this year. This represents an increase of 54 per cent over the same period last year.

Also Read:

In A New Record, Rs. 10 Lakh Crores Collected As Income Tax In 2017-18

PM Modi’s Interim May Include Direct Tax Proposals