Rs 73,500 crore has been successfully recovered by the income tax department in the pending dues for the FY 2023-24 up to March 15. The same recovery shows a rise as compared to the former fiscal year’s collection of Rs 52,000 cr.
The corporate tax dues amounted to Rs 56,000 crore, and personal income tax comprised Rs 16,500 crore, out of the total recovered amount. Rs 50 crore is the undisclosed income from the foreign assets.
The same comes as a portion of the focused recovery plan that has the objective of increasing the collection of the outstanding tax arrears.
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While furnishing the year-wise particulars of outstanding dues is difficult, the collection has witnessed a remarkable rise. It averaged eight per cent of the annual outstanding until 2021-22, increased to 10.78 per cent in 2022-23, and has achieved around 17 per cent in the current fiscal year. Pending tax arrears, which exceeded Rs 21.94 trillion as of January 31, 2023, from Rs 15 trillion in April 2021, have been a major concern for the tax department.
To update the database measures are in process to ensure preciseness, certainly in the cases where the taxes were filed but not shown in the system. Such actions align with the devotion of the council to enhance the assessed services and maintain the taxation regime integrity.
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Revenue Secretary Sanjay Malhotra emphasized the continuity of the taxation regime. He witnessed the significant buoyancy in personal income tax, attributing it to the benefits furnished to taxpayers in recent years.
The devotion of the government is been emphasized by Malhotra to improve the taxpayer’s services, focusing on rationalization, simplification, and trust-based taxation. Addressing the non-extension of the concessional tax system for the corporates beyond March 31, 2024, he specified that the firms were furnished enough time to claim the advantage and that the current taxation rate of 22% for the corporates is likely to acknowledge the economy size.
Malhotra concluded, “Under these factors, it was determined that the concessional tax regime should sunset as planned,”.