Skip to main content

Issue in direct tax collections & Tax returns filed - Today Current Affairs Topics

A Look At Tax Collections


What is the issue?
  • Widening tax net and increased tax collections are achievements of the recent government initiatives.
  • However, declining non-individual returns and rising cost of collections call for a closer examination.
What are the recent developments?
  • Various policy measures have ensured bringing more people under the direct tax net in the recent past.
  • The number of tax returns filed recently went up by about 24.6 per cent.
  • The latest direct tax collections were marginally higher than that presented in the Revised Estimates in the last Budget.
  • Personal income tax collections rose by 21 %, compared to 8% in the previous year.
  • Corporation tax collections rose by 7%, compared to 6% in the previous year.
  • Indirect tax net is also getting wider because of a rise in the number of entities getting registered under the goods and services tax (GST).
( More than 800 of our students are IAS, IPS, etc from Shankar IAS Academy )

What are the points to be noted?
  • While individual tax returns went up, returns filed by non-individuals saw a drop of about 10 per cent during the same period.
  • This includes firms, companies, associations of persons, bodies of individuals and Hindu undivided families.
  • The drop could be due to -
  1. the crackdown on shady or non-operating companies, used largely for engaging in questionable transactions in post-demonetisation phase.
  2. the cancellation of over a million duplicate or multiple permanent account numbers has excluded a larger portion of the earlier tax filing firms.
  • States like Haryana, Karnataka, Tamil Nadu, West Bengal, Gujarat accounted for a considerable rise in tax collection in the post-demonetisation phase.
  • However, states like Maharashtra's and Delhi's growth in collections are much lower in percentage in comparison to the states above.
  • This is despite the fact that the two states together account for almost half of the country’s total direct tax collections.
  • Tax deduction at source and advance taxes as a share of total direct tax receipts of the Centre raises the question on the increased cost of collections.
What is to be done?
  • Government has to analyse deeper into the reasons for 10 per cent drop in filing of returns by non-individuals and the disparity among states.
  • Also, the impact of GST on the tax net is to be seen in the long run.
  • With the spread of digitisation and technology, efforts to ensure lower tax collection cost is of importance.
 Online classes for India and NRI 


Labels:
Location: 4th Ave, Shanthi Colony, Mangalam Colony, Anna Nagar, Chennai, Tamil Nadu 600040, India

Comments

Post a Comment

Popular posts from this blog

Role Of CAG, Creation And Economic, CEPA With South Korea - Today Current Affairs Topics

Upgrading The CEPA With South Korea Why in news? India has decided to upgrade its existing trade pact with South Korea. The domestic industry has flagged concerns over the agreement. What is CEPA? Comprehensive Economic Partnership Agreement - CEPA, was a trade deal signed between India & South Korea in 2009 . The CEPA has increased bilateral trade volumes by over 50%. Many Korean companies have penetrated deep into the Indian consumer goods market and have directly benefitted from CEPA. Recently in a review meeting, both countries have decided to upgrade the CEPA at the earliest – possibly by 2018. This has angering domestic exporters, who claim the pact has disproportionately helped Korean exporters. What are the concerns about CEPA? Trade Deficit –  India’s trade defict with South Korea is continuously worsening with time. While India imported $12.58 billion worth of goods from South Korea in 2016-17, its exports totalled only $4.24 billion. Misuse -  T
Post a Comment
Read more

NEET, Further Rate Cut. Private Hospitals - Today Current Affairs Topics

Addressing The Concerns With NEET What is the issue? National Eligibility cum Entrance Test (NEET) is distressing rural students with medical aspirations, the test needs a reform.  What is the basis of NEET? NEET is based on a core curriculum approach, whereby the syllabi of all the school boards have been taken into consideration. It has been prepared by the CBSE, Council of Boards of School Education,National Council of Educational Research and Training (NCERT) and adopted by the Medical Council of India. What are the issues with Indian education system? India doesn’t have a common core curriculum, there are 50 different boards. There are wide variations with regard to curriculum design, curriculum transaction and curriculum evaluation among these boards. No significant efforts had been taken so far to bring some sort of uniformity in these curriculums. Only few state boards have prepared their content in tune with the curriculum of national boards, particularly
Post a Comment
Read more

Generalist Vs Specialist, Social Business - Today Current Affairs Topics

Listing Of NHAI Why in news? Union ministry of Road transport is planning for initial public offering or IPO of National Highways Authority of India (NHAI). What is an IPO? An initial public offering, or IPO, is the very first sale of stock issued by a company to the public. Until a company’s stock is offered for sale to the public, the public is unable to invest in it. Prior to an IPO the NHAI has shareholders made up primarily of early investors i.e. government itself or its authorised firms. By now any individual or institutional investor who wasn’t involved in the early days of the NHAI’s capital, can buy the shares. What is the need for such proposal? Roadways ministry has long argued that there is “no shortage” of money but due to changing economic trends, it came up with the plan of IPO. Due to bad debts and NPAs the government is not so confident in investing on infrastructure projects. Banks are taking too long to approve the financial closure of highway p
Post a Comment
Read more