Income Tax department recovers Rs 73,500 cr in pending dues for FY24
New Delhi, Mar 19, 2024
Corporate tax made up Rs 56,000 crore, personal income tax constituted Rs 16,500 crore, and undisclosed income from foreign assets accounted for Rs 50 crore
The Income Tax Department has successfully recovered Rs 73,500 crore in pending dues for the financial year 2023-24 up to March 15, according to a report by The Economic Times. This recovery marks a substantial increase compared to the previous financial year's collection of over Rs 52,000 crore.
Of the total recovered amount, corporate tax dues amounted to Rs 56,000 crore, while personal income tax constituted Rs 16,500 crore. Additionally, undisclosed income from foreign assets accounted for Rs 50 crore.
This accomplishment comes as part of a focused recovery plan aimed at enhancing the collection of outstanding tax arrears.
While providing year-wise details of outstanding dues is challenging, the collection has seen a notable increase. It averaged eight per cent of the annual outstanding until 2021-22, rose to 10.78 per cent in 2022-23, and has reached approximately 17 per cent in the current financial year. Pending tax arrears, which surpassed Rs 21.94 trillion as of January 31, 2023, from Rs 15 trillion in April 2021, have been a primary concern for the tax department.
Efforts are underway to update the database to ensure accuracy, particularly in cases where taxes were paid but not reflected in the system. These actions align with the department's commitment to enhancing taxpayer services and maintaining the integrity of the taxation regime.
In an interview with PTI ahead of the Interim Budget 2024-25, Revenue Secretary Sanjay Malhotra highlighted the continuity in the taxation regime. He noted the substantial buoyancy in personal income tax, attributing it to the benefits provided to taxpayers in recent years.
Malhotra emphasised the government's commitment to improving taxpayer services, focusing on rationalisation, simplification, and trust-based taxation. Addressing the non-extension of the concessional tax regime for corporates beyond March 31, 2024, he clarified that companies were given ample time to avail of the benefits and that the existing taxation rate of 22 per cent for corporates is reasonable considering the size of the economy.
"In light of these factors, it was decided that the concessional tax regime should sunset as planned," Malhotra concluded.
[The Business Standard]
