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

Deal Shell Companies & Export Subsidy Issue - Today Current Affairs Topics

How To Deal Shell Companies Why in news? Recently union government has initiated action against more than two lakh shell companies as part of Operation Clean Money. What is operation clean money? Operation Clean Money was initiated by Income Tax Department (ITD). Initial phase of the operation involved-verification of large cash deposits made after demonetization. Second phase of the operation involves is identification of high risk persons for detailed investigations by the ITD. What are shell companies? Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession. The government views them with suspicion as some of them could be used for money laundering, tax evasion and other illegal activities. Some laws helpin curbing illegal activities to target shell companies are Benami Transaction (Prohibition) Amendment Act 2016 The Prevention of Money Laundering Act 2002 The Companies Act,...
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, particula...
Post a Comment
Read more

IAS Exam Current Affairs Study Material May 2017 - Vol 1

CURRENT AFFAIRS – MARCH 2017 PAPER – II  1 POLITY 1.1 Hung Assembly -Goa & Manipur 1.2 Demanding St Status –Narikuravars 1.3 Vote Tampering in EVMS 1.4 Electoral Bonds 1.5 Special Category Status 1.6 Babri Masjid Issue GS PAPER II  1. POLITY 1.1 HUNG ASSEMBLY - GOA & MANIPUR Why in news? Governor  of  Goa  ignored  the  established  principle  of  inviting  the  single  largest  party  and appointed  BJP  leader Manohar Parrikar as the Chief Minister. What is the situation? The Congress has won 17 seats in Goa and the BJP has 13 MLAs in a House of 40.  The  Governor  did  not  consult  the  single  largest  party  and  invited  BJP,  who  formed  an alliance,  to  form  the government. A similar situation has developed in Manipur. Its Governor invited the BJP and...
Post a Comment
Read more