Tax collection drops 1.69%

NEW DELHI, Nov 19: The income tax collection has registered a decline during April-October 1997 as compared to the corresponding period last year, notwithstanding the claims of the finance ministry that more people have been brought into the tax net. The fall in collection is prompting the revenue department to contemplate vigorous launch of search and seizures operations which came up for extensive discussion at the conference of the chief commissioners and director generals of income tax held in the capital on Wednesday.

According to an income tax commissioner present at the conference, the most disappointing aspect of the direct tax collection was the 1.69 per cent decline in the income tax collection during the first seven months of the current financial year. As against the income tax collection of Rs 8,100 crore during April-October 1996, the total realisation during the first seven months of the current fiscal was about Rs 7,995 crore.

The only saving grace, he said, was corporate tax collection which registered a growth of 10.3 per cent during the seven months amounting to about Rs 7,850 crore. Taking into account the interest tax collection, which worked out to be Rs 354 crore during the period, the total growth in direct taxes worked out to be a meager 1.70 per cent.The total direct tax collection during April-October 1997 worked out to be Rs 16,199 crore.