The actual direct tax collection for the 2010-2010 financial year fell by 4.92 per cent to Rs 12.33 lakh crore, the finance ministry said in a statement.
201 fiscal-1. The total government tax collection in the financial year was Rs 12,3,720 crore, which is 201 F-1. 12,97,674 crore was collected in the financial year.
Corporate tax and personal income tax are taken into account, if the total collection in 2019-20 was Rs 14.01 lakh crore.
The Ministry of Finance said that “the reduction in direct tax collection is on the expected line and the historic tax reform has been adopted and is temporary in nature due to many more refunds issued during the financial year 2012-2016”.
“This fact becomes even clearer if we compare the gross collection (which eliminates the aviation generated by the variation of the amount of refunds paid in one year) after considering the estimated revenue forecast for the bold tax reform adopted, which has a direct impact for F-1 F-201. In the case of tax collection, “it said.
The ministry further said that 2012-201. The total repayment in the financial year was Rs 1.884 lakh crore, which is 201Y-1. 1.6161 lakh crore in the financial year, an increase of 14 per cent year-on-year.
According to the government, measures like reduction of corporate tax rates for all existing domestic companies, incentives for new manufacturing companies, reduction in MAT rate and IT exemption for individuals earning up to Rs 500,000 resulted in loss of revenue of Rs 1.44 lakh crore for corporate tax and personal income tax collection. 23,200 crore has been lost.
A statement from the Ministry of Finance on the slow pace of investment despite tax reform said that the assertion that investment had not been raised was “incorrect” and “without appreciating the realities of the business world”.
Setting up new manufacturing facilities requires various preliminary steps such as land acquisition, construction of factory sheds, setting up of offices and other infrastructure among others and these activities cannot be completed within a few months, and manufacturing centers cannot start operations immediately. Announcing the reforms, the ministry said.
“The tax reform was announced in September 2019 and the results are expected to be visible in the next few months and years to come. No, ”it says.
The finance ministry added that the government is committed to stimulating growth by providing a hassle-free direct tax environment, including a moderate tax rate and ease of taxpayer loyalty, and by revising the direct tax system.
It also outlines some recent steps, including plans to abolish personal income tax, dividend distribution tax (DDT) and tax dispute settlement, among others.