Central Board of Direct Taxes (CBDT) chairman JB Mohapatra said the government’s decision to reform the income tax department and “strengthen” the domestic economy has resulted in record direct tax collections.
He dismissed the apprehensions related to the economy affected by COVID-19 and said that the companies (in terms of paying taxes) performed well during the current financial year 2021-22. Mohapatra said, “It will be very difficult to say how the situation will be next year but there is no room to say that good times last only for four quarters.” He also mentioned the reasons for collection of records during the conversation.
JB Mohapatra said, “First of all, the Indian economy has to be strengthened. The better the economy, the better the tax collection, which is happening now.” He said that the collections have also increased due to the reforms carried out in the departments which have an impact on tax collection.
Mohapatra said that there are many policy measures which have been taken either in budget or out of budget and now the ‘impact’ or ‘benefit’ of these measures is now visible. “The third reason for the increase in tax collection could be the steps being taken in the last four years towards reforms within the department,” he said.
Mohapatra said, “The fourth reason is small but important and it pertains to the incorporation of technology in the Income Tax Department.” He said that out of more than Rs 13.63 lakh crore tax collection (as on 16 March) only Rs 54,000-55,000 crore came from regular assessment tax (under which tax is paid by the taxpayer after the notice is issued by the department). Is).
The CBDT chairman said the balance collection is coming through voluntary compliance and this is happening because taxpayers are getting empowered by the financial information they are getting. CBDT formulates policy for Income Tax Department.