India’s economic hub Mumbai has topped the government’s direct tax collection targets as India sets region-wise goals for collection of personal income tax and corporate tax financial year 2020-21.
India’s economic hub Mumbai has topped the government’s direct tax collection targets as India sets region-wise goals for collection of personal income tax and corporate tax financial year 2020-21. The city alone is expected to bring about one-third of total taxes collected at around 31% of the nationwide target of collecting Rs 13.19 lakh crore, The Indian Express reported. National capital Delhi follows with the target set at Rs 1.89 lakh crore or 14.3% of the total target, according to a communication by the Central Board of Direct Taxes (CBDT) on Thursday.
Next in line are Karnataka and Goa region with a 10.7% share and Tamil Nadu and Puducherry follow with 6.9% share in overall target. With coronavirus pandemic affecting India as well, the government has decided to stick to the Budget target of direct tax collections for 2020-21, There are rising concerns about a hit to the country’s growth sharply for this financial year due to nationwide lockdown of over 40 days. In the previous fiscal 2019-20, the net direct tax collections had slumped after 20 years owing to the economic slowdown and the impact of the coronavirus pandemic.
In the previous financial year, the government had collected Rs 1.42 lakh crore less from the downward revised target at Rs 10.27 lakh crore, a decline of about 10% from FY19 collections. For the current fiscal year, the Central Board of Direct Taxes has communicated the region-wise breakup of the targets. “The Budget target for each cadre-controlling Pr. CCIT has been fixed keeping in view the revenue potential of the region, which is based on the weighted average growth rate of net collections of the last three years, giving highest weight to the immediately preceding year,” the CBDT missive said.
For this financial year, the government had set a target of Rs 6.81 lakh crore from corporate tax, Rs 6.38 lakh crore from income tax and security transaction tax.