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Apr 02, 2020
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Direct tax mop-up falls short by record Rs 1.45 trn of revised estimates
The central government collected Rs 10.27 trillion as direct taxes during 2019-20, a record shortfall of Rs 1.45 trillion, or 12.2 per cent, compared with the revised estimates (RE). This may prompt the revenue department, under the finance ministry, to reset its Budget math for 2020-21, official sources said.
According to a senior revenue official, the massive shortfall can be attributed to the overall economic slump, besides corporate tax rate cuts, the Vivaad se Vishwas tax settlement scheme proving to be a non-starter, and the ongoing Covid-19 lockdown.
Official figures showed that the gross amount collected under direct taxes as of March 31 was Rs 12.11 trillion. This included the tax refunds outgo to the tune of Rs 1.83 trillion. The net collection, thus, stood at Rs 10.27 trillion, as against the revised estimates of Rs 11.70 trillion.
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