The government’s revenue foregone in the form of incentives to corporates in the current fiscal is estimated to grow nearly 8.63 per cent to over Rs 83,492 crore.
As per the Budget document 2017-18, the revenue foregone stood at Rs 76,857.70 crore in the 2015-16 fiscal.
Revenue foregone on account of deduction of export profits of units located in SEZs (section 10A and 10AA) is estimated at Rs 20,492 crore in the current fiscal year.
Companies take advantage of various concessions to reduce tax liability, while individuals park their funds in tax savings scheme to reduce tax burden.
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Revenue foregone on deduction of profits of undertakings engaged in generation, transmission and distribution of power would be Rs 12,401.04 crore in 2016-17 compared to Rs 11,416 crore in the last fiscal year, the document said.
Similarly, revenue foregone on deductions of profit of industrial undertakings derived from production of mineral oil and natural gas is estimated at Rs 6,502.4 crore in the current fiscal.
According to the Budget document, revenue impact of major tax incentives for corporate tax payers during the financial year 2016-17 is based on the corporate returns filed up to November 30, 2016, which constitute 90 per cent of the expected returns in the financial year.