MUMBAI, March 1: Income-tax collections from Mumbai between April 1, 1997, and January 31, 1998, have registered a 37 per cent growth over the corresponding period a year earlier, thanks to the windfall from the Voluntary Disclosure of Income Scheme (VDIS). There has been a 10 per cent rise in the corporate tax at around Rs 5,700 crore, while income-tax collections have amounted to around Rs 4,575 crore.The Central Board of Direct Taxes (CBDT) has set a target of around 19,000 crore for the city, which alone accounts for 40 per cent of the total tax revenue in the country.
The corporate tax target for 1997-98 has been set at Rs 11,220 crore, while income-tax collections are estimated to be around Rs 5,860 crore. The target for interest tax is around Rs 1,565 crore.
While conceding that tax-collection targets were slightly on the higher side, chief commissioner of income tax (I) Mumbai B Misra said the department expected to meet the corporate tax figure. Last year's total corporate-tax collectionwas Rs 7,927 crore, while income-tax receipts were to the tune of Rs 4,428 crore.
Interest tax collections till January 1998 were around Rs 360 crore. "The interest tax has been reduced from 3 per cent to 2 per cent, but we still hope to rake in at least Rs 500 crore," Misra said.
According to him, the income-tax department is gearing up to widen the tax-base and introduce computerisation at the lowest levels, so that revenue is beefed up. One of the priority areas for computerisation is streamlining the filing of returns.
"This will help us compile information on collections and update arrears, so that an accurate demand can be imposed on assessees," he said.Processing of challans, providing online facility to the assessing officer so that the permanent account number (PAN) is allotted on the spot and build up a tax-payers base are also on the department's agenda.
"The permanant acccount scheme will play a crucial role in the data-collection process," Misra said. The department plans to allot PANcards to all the new assessees.
In Mumbai, the number of tax payers has increased from 11.49 lakh to 13.76 lakh till December 1997. According to Misra, the department is likely to add three lakh new tax payers in 1997-98.
The tax-widening machinery of the department is in full swing, with show cause notices having been issued to 300 farm-house owners and 17,500 housing co-operative societies. The notices seek mandatory filing of income-tax return U/S 139(1), entailing four economic criteria of possessing a house, telephone, car and a trip abroad.
According to the information collected by the inccome-tax department, there are approximately 16 lakh telephone subscribers, seven lakh cars, 2.5 commercial units and four lakh people in Mumbai who have travelled abroad. However, only 5,600 returns U/S 139(1) have been received so far.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
