Reforms in I-T dept, 'strengthening' of economy led to record tax collections: CBDT Chairman

Reforms undertaken by the Government within the Income Tax department and the “strengthening” of the Indian economy are among the major factors that led to the highest-ever direct tax collections in the country, which stand at over ₹13.63 lakh crore, CBDT Chairman J.B. Mohapatra has said.

He said apprehensions about the State of the economy, battered by the COVID-19 spread, were belied as it “did so well and the corporates came out so well [in paying taxes]” during the current financial year 2021-22.

Mr. Mohapatra exuded confidence that the direct tax mop up, which primarily includes personal income tax and corporation tax revenue receipts, will continue its present streak and the department will be able to successfully chase the target of collecting ₹14.20 lakh crore in taxes in the next fiscal.

“It will be very difficult to say how things will pan out the next year but there is no room to say that good times only last for four quarters,” Mr. Mohapatra told PTI in an interview.

The Central Board of Direct Taxes (CBDT) is the administrative body for the I-T department and according to its March 17 announcement, direct tax collections (as on March 16) in India broke all previous records.

The CBDT chief listed the reasons that he believes led to the record collections.

“First is the strengthening of the Indian economy. The better the economy, the better is the tax mop up, which is happening right now.” “Second reason will be the reforms undertaken across departments having an effect on the tax department’s own collection numbers,” he said.