The government would exceed the current fiscal year's direct tax collection target of Rs 22.07 lakh crore, Central Board of Direct Taxes (CBDT) chairman Ravi Agarwal said on Monday.
Agarwal further stated that taxpayers who have not revealed their overseas income or assets on their ITRs have till December 31 to file an amended return for fiscal year 2023-24. The tax agency is sending SMS and emails to assessees who have not declared high-value assets.
Agarwal, who was inaugurating the Taxpayers Lounge at the India International Trade Fair (IITF), also stated that over 6,000 ideas for a review of the income tax law had been received in order to make the language simpler and easier to grasp.
"We are hopeful that we will exceed the budget objective for tax collection. Collections from corporate and non-business taxes have increased," Agarwal added.
According to the most recent CBDT data, net direct tax collection increased by 15.41% between April 1 and November 10, reaching Rs 12.11 lakh crore.
This includes Rs 5.10 lakh crore of net corporation tax and Rs 6.62 lakh crore of non-corporate taxes (including those paid by individuals, HUFs, and businesses).
During the period, Rs 35,923 crore in securities transaction taxes (STT) were collected.
When it comes to warning taxpayers for non-disclosure of overseas assets, Agarwal stated that the tax department obtains all information regarding foreign assets from nations via automatic exchange of information and compares it to the disclosures in ITRs.
"The main objective is to remind taxpayers to declare their foreign assets. They can file a revised return by December 31," he stated.
Overseas assets include overseas bank accounts, foreign cash value insurance, financial interest in any business or entity, immovable property outside India, foreign equity or debit interest, accounts with an assessee's signing power, and any other capital assets.
When asked about the status of the income tax law reform, the CBDT chief stated that public engagement is still ongoing, and the department has received over 6,000 recommendations.
"I would invite tax payers to come forward and give suggestions on international best practice, statute," he said.
Last month, the CBDT's internal committee solicited public opinion for a review of the six-decade-old I-T Act, including language simplification, lawsuit reduction, compliance reduction, and the removal of obsolete clauses. The CBDT has established 22 expert sub-committees to study various parts of the Act.
Following Finance Minister Nirmala Sitharaman's Budget announcement for a comprehensive review of the Income-tax Act of 1961, the CBDT established an internal committee to oversee the review and make the Act concise, clear, and easy to understand, reducing disputes and litigation and providing greater tax certainty to taxpayers.
