CBDT: Direct tax collection expected to exceed the target in the current financial year, Chairman estimates

New Delhi| Direct tax collection is expected to exceed the target of Rs 22.07 lakh crore in the current financial year (2024-25). Central Board of Direct Taxes (CBDT) Chairman Ravi Aggarwal made this estimate on Monday. Aggarwal said taxpayers who have not disclosed foreign income or assets in their income tax returns have until December 31 to file their revised returns for FY 2023-24. The tax department is sending SMS and e-mails to taxpayers who have not disclosed high value assets.

However, he did not tell how many taxpayers have been sent such SMS and e-mails. Inaugurating the Taxpayer ‘Lounge’ at the India International Trade Fair (IITF), Aggarwal also said that there have been more than 6,000 suggestions in the context of the review of the Income Tax Law to make the language simple and easy to understand for the review of the Income Tax Law

Aggarwal told reporters here, ‘‘We hope that we will exceed the budget target of tax collection. Other tax collections, including company and personal taxes, have increased.’’ According to the latest data of CBDT’s tax collection, the net direct tax collection from April 1 to November 10 has increased by 15.41 percent to Rs 12.11 lakh crore. This includes a net company tax of Rs 5.10 lakh crore and a non-company tax of Rs 6.62 lakh. Non-company tax includes tax paid by individuals, Hindu undivided families, etc.

During this period, Rs 35,923 crore was received under Securities Transaction Tax (STT) head. The government has set a target of raising Rs 22.07 lakh crore from direct tax for the current financial year. It aims to achieve Rs 10.20 lakh crore from company tax and Rs 11.87 lakh crore from personal income tax and other taxes.

Regarding informing taxpayers about non-disclosure of foreign assets, Aggarwal said that the tax department receives all the details about foreign assets from different countries under the system of automatic exchange of information and income tax returns. Matches such details with disclosures.

He said, ‘‘The basic objective of this step is to remind taxpayers about the declaration of foreign assets. They may file amended returns by 31 December.’’ Foreign assets include foreign bank accounts, financial interests in a business/entity, immovable property outside the country, foreign equity and other assets.

Asked about progress in reviewing the income tax law, the CBDT chief said public consultations were ongoing and the department had received more than 6,000 suggestions. He said, ‘‘I invite taxpayers to come forward and make suggestions about better activities and regulations internationally.’’

Finance Minister Nirmala Sitharaman had announced a comprehensive review of the Income Tax Act, 1961 in the budget. CBDT has constituted an internal committee to monitor the review and make the Act simple, clear and easy to understand. The initiative aims to reduce legal disputes over taxes and provide taxpayers with greater certainty in tax matters.