Lok Sabha Question No. 1906 (UNSTARRED), answered on 2022-12-19
Subject: Collection of Direct Taxes
Ministry: FINANCE
Asked by: Amol Ramsing Kolhe, Supriya Sadanand Sule, Sunil Dattatray Tatkare, Gajanan Chandrakant Kirtikar, Kuldeep Rai Sharma, C.N. Annadurai, Dhanush M Kumar, Subhash Ramrao Bhamre

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 1906

ANSWERED ON MONDAY THE 19 TH  DECEMBER, 2022

## Collection of Direct Taxes

1906. DR. AMOL RAMSING KOLHE:

SHRIMATI SUPRIYA SULE:

SHRI SUNIL DATTATRAY TATKARE:

SHRI GAJANAN KIRTIKAR:

SHRI KULDEEP RAI SHARMA:

SHRI C.N. ANNADURAI:

SHRI DHANUSH M. KUMAR:

DR. SUBHASH RAMRAO BHAMRE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of the direct taxes that have been collected during each of the last three years and the current year;
- (b) the details of total direct tax received by the Government from various States/UTs during the above period;
- (c) whether Direct Tax collections is 35.46 per cent which is higher than the gross collections for the corresponding period of last year and if so, the details thereof and the challenges faced by the Government to achieve higher direct tax collection;
- (d) whether the Government has set any target for the collection of direct taxes and if so, the details thereof;
- (e) the details of the indirect taxes collected under Goods and Services Tax (GST) during each of  the  last  three  years  and  the  percentage  change  in  collection  from  non-GST  indirect  tax collection; and
- (f) the other steps contemplated by the Government to make the system of direct tax collection more effective?

## ANSWER

## MINISTER OF FINANCE (SHRI PANKAJ CHAUDHARY)

## (a) The details of direct taxes collected during last 3 years and current year are as under:

(Amount in Rs. crores)

| Financial Year            | Total Direct Tax collection (Net)   |
|---------------------------|-------------------------------------|
| 2019-20                   | 10,50,681                           |
| 2020-21                   | 9,47,176                            |
| 2021-22                   | 14,12,422                           |
| 2022-23 (upto 30.11.2022) | 8,77,470                            |

Source: Pr. CCA, CBDT

- (b) Under the direct tax statutes, all direct taxes are collected by the Central Government. Details of direct taxes collected by Government, State/UT-wise for last 3 years is as per Annexure A. State-wise direct tax collection details are prepared at the end of the financial year.
- (c) The gross direct tax collections for FY 2022-23 (upto 30.11.2022) are higher by 29.66 % over the gross direct tax collections for the corresponding period of last year. The details are as under:

(Amount in Rs. crores)

| Financial Year            | Total Tax collection (Gross)   |
|---------------------------|--------------------------------|
| 2021-22 (upto 30.11.2021) | 8,43,301                       |
| 2022-23 (upto 30.11.2022) | 10,93,385                      |

Source: Pr. CCA, CBDT

In the period under reference, the growth has been achieved due to the performance of economy, administration and implementation of the provisions of the direct tax laws.

- (d)  The Government has set target of Rs. 14,20,000 crores for collection of direct taxes as Budget Estimates for FY 2022-23.
- (e)  The details of the indirect taxes collected under Goods and Services Tax (GST) during each of the last three years and the percentage change in collection from non-GST indirect tax collection is at Annexure B.
- (f)   The Government has undertaken many steps to make the system of direct tax collection more effective  by  curbing  tax  evasion,  widening/deepening  of  tax  base,  promoting  voluntary compliance, promoting digital transactions and taxpayer outreach initiatives. The details of these steps are at Annexure C.

Source: Receipt Budget FY 2022-23

*********************

| Direct Tax (Net) Collection (Rs.in Crores)   | Direct Tax (Net) Collection (Rs.in Crores)   | Direct Tax (Net) Collection (Rs.in Crores)   |           |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|-----------|
| States/UTs                                   | 2019-20                                      | 2020-21                                      | 2021-22   |
| Andaman &Nicobar Islands                     | 116.17                                       | 67.88                                        | 88.86     |
| Andhra Pradesh                               | 42730.45                                     | 40314.07                                     | 56663.27  |
| Arunachal Pradesh                            | 241.48                                       | 182.06                                       | 233.34    |
| Assam                                        | 4723.02                                      | 4550.89                                      | 5688.45   |
| Bihar                                        | 5723.48                                      | 5381.96                                      | 7396.60   |
| Chandigarh                                   | 2668.12                                      | 1868.01                                      | 3574.08   |
| Chhattisgarh                                 | 5008.88                                      | 4451.08                                      | 7782.70   |
| Dadra and Nagar haveli                       | 269.65                                       | 548.34                                       | 985.00    |
| Daman and Diu                                | 264.40                                       |                                              |           |
| Delhi                                        | 149613.12                                    | 120120.94                                    | 177824.22 |
| Goa                                          | 2170.29                                      | 2655.27                                      | 2879.41   |
| Gujarat                                      | 49517.69                                     | 46863.55                                     | 71642.27  |
| Haryana                                      | 27824.12                                     | 24492.81                                     | 37729.33  |
| Himachal Pradesh                             | 2482.26                                      | 2322.74                                      | 3072.86   |
| Jammu and Kashmir                            | 1318.29                                      | 1036.83                                      | 1778.40   |
| Jharkhand                                    | 6637.17                                      | 5581.39                                      | 7031.06   |
| Karnataka                                    | 108973.15                                    | 116254.58                                    | 168678.09 |
| Kerala                                       | 15164.10                                     | 14515.59                                     | 19562.02  |
| Ladakh                                       | 0.00                                         | 0.02                                         | -0.06     |
| Lakshadweep                                  | 20.36                                        | 20.77                                        | 28.79     |
| Madhya Pradesh                               | 18698.24                                     | 13283.23                                     | 18137.83  |
| Maharashtra                                  | 384258.21                                    | 331969.03                                    | 524497.64 |
| Manipur                                      | 139.11                                       | 417.65                                       | 310.50    |
| Meghalaya                                    | 1101.54                                      | 999.73                                       | 1063.86   |
| Mizoram                                      | 42.28                                        | 44.07                                        | 90.14     |
| Nagaland                                     | 134.77                                       | 176.91                                       | 292.70    |
| Orissa                                       | 13581.03                                     | 10257.99                                     | 15587.24  |
| Pondicherry                                  | 805.41                                       | 611.86                                       | 991.78    |
| Punjab                                       | 11703.85                                     | 10491.10                                     | 15981.11  |
| Rajasthan                                    | 16507.93                                     | 17539.35                                     | 25215.64  |
| Sikkim                                       | 400.26                                       | 291.82                                       | 384.10    |

| Tamil Nadu    |        69809.31 | 61122.33   | 88438.33     |
|---------------|-----------------|------------|--------------|
| Telangana     | 14045.8         | 15853.93   | 27184.95     |
| Tripura       |   292.02        | 488.73     | 424.19       |
| Uttar Pradesh | 26990           | 26735.17   | 34719.83     |
| Uttarakhand   |  3406.16        | 3088.27    | 4208.44      |
| West Bengal   | 40628.7         | 40310.24   | 53774.61     |
| Total         |     1.02801e+06 | 924,910.17 | 1,383,941.62 |
| CTDS          | 22669.7         | 22266.20   | 28480.83     |
| Grand Total   |     1.05068e+06 | 947176.37  | 1412422.45   |

There  is  no  state-wise  distinction/distribution  of  the  accounts  maintained  by  Pr.  CCA, CBDT. However, the above data is furnished on the basis of inputs received from NSDL by Pr. CCA, CBDT.

Source: Pr. CCA, CBDT

## Details of Net Central Indirect Tax Collection during last three financial years alongwith percentage change are as under:

(Amount in Rs.Crore)

| Sl.No.   | Tax Head                                           | Financial year   | Financial year   | Financial year   |
|----------|----------------------------------------------------|------------------|------------------|------------------|
| Sl.No.   | Tax Head                                           | 2019-20          | 2020-21          | 2021-22[P]       |
| 1.       | Customs Duty                                       | 1,09,283         | 1,34,750         | 1,99,728         |
| 2.       | Union Excise Duty                                  | 2,39,452         | 3,89,667         | 3,90,808         |
| 3.       | Service Tax(Arrear)                                | 6,029            | 1,615            | 1,012            |
| 4.       | Sub-total Non - GST [1+2+3]                        | 3,54,764         | 5,26,032         | 5,91,548         |
|          | %Growth (y-o-y)                                    | -0.3%            | 48.3%            | 12.5%            |
| 5.       | CGST                                               | 4,94,071         | 4,56,334         | 5,91,226         |
| 6.       | IGST                                               | 9,125            | 7,251            | 3,244            |
| 7.       | CC                                                 | 95,553           | 85,192           | 1,04,769         |
| 8.       | Sub-total GST [5+6+7]                              | 5,98,749         | 5,48,777         | 6,99,239         |
|          | %Growth (y-o-y)                                    | 3.0%             | -8.3%            | 27.4%            |
| 9.       | Total Net Central Indirect Tax [GST+Non-GST] [4+8] | 9,53,513         | 10,74,810        | 12,90,787        |
| 10.      | %Growth (y-o-y)                                    | 1.7%             | 12.7%            | 20.1%            |

Source:- For FYs 2019-20 & 2020-21: Receipt Budget, 2021-22: Pr.CCA (CBDT);

[P]: Provisional

## Steps undertaken to make the system of direct tax collection more effective

## I. Government has taken the following steps to curb tax evasion and widen and deepen the tax base:

- Updated return - A new provision has been introduced in the Income-tax Act, 1961 (Income-tax Act) enabling the taxpayer to update his return anytime within two years from the end of the relevant assessment year. A taxpayer can file an updated return by voluntarily admitting omissions or mistakes and paying an additional tax as applicable. A formal mechanism of first passively sharing information through Annual Information Statement  (AIS)  and  then  actively  sharing  through  e-Verification  scheme  has  been recently  enabled.  Non-intrusive  voluntary  compliance  through  this  two-pronged approach is devised to enable access to a taxpayer of information available with the Department and to nudge the taxpayer to correct omissions/errors/oversights allowing updating of return of income.
- Expansion of scope of Tax deducted at Source/ Tax Collected at Source : The scope of tax deduction at source (TDS) and Tax Collection at Source (TCS) has been widened by  including  new  transactions  under  its  scope  like  virtual  digital  assets,  benefit  or perquisite in respect of business or profession, foreign remittance, purchase of luxury car,  e-commerce  transactions,  purchase/sale  of  goods,  acquisition  of  immovable property, etc.
- TDS/TCS rates for non-filers and for non-PAN cases have been increased.
- Equalisation Levy at 6% for online advertisement and at 2% for sale of goods/provision of services through e-platform has been introduced.
- Quoting of PAN has been mandated and linking of PAN and Aadhaar has also been made compulsory.
- Black Money Act has been enacted and Benami Act has been operationalized.
- Various amendments have been made in the Income-tax Act to curb tax evasions.
- Appropriate action against violations of direct tax laws is undertaken in various ways, including  search  &  seizure  actions,  surveys,  assessment  of  income,  levy  of  tax, imposition of penalty and launching of prosecution in appropriate cases. These actions create deterrence effect against tax evasion, thereby leading to more effective direct tax collection.

## II. Government has promoted voluntary income-tax compliance through easing of compliance for taxpayers

- Faceless assessment, faceless appeal and faceless penalty schemes have been rolled out to promote transparent, efficient and accountable income tax administration.
- Pre-filing of returns has been introduced to facilitate easy and accurate filing of incometax return.
- Form 26AS has been redesigned to give more information to taxpayers enabling correct income tax return filing.
- Many compliances have been reduced.

## III. Government has taken steps to promote digital transactions to create less cash economy

- Threshold for tax audit has been increased to rupees 10 crore where 95% transaction in business are in non-cash mode.
- TDS on cash withdrawal above a threshold has been introduced
- Presumptive tax rate for small business has been reduced, if business is through digital transactions
- Business having turnover exceeding rupees 50 crore have been mandated to provide non fee based electronic mode of payment
- Threshold limit for cash transactions has been reduced.

## IV. Government has taken various taxpayer outreach initiatives:

- Extensive  publicity  on  conventional  media  (including  TV,  radio,  print,  web  and Cinema) and media campaigns (including on social media) to facilitate information for voluntary compliance
- Release of digital comic books and board games to educate the future taxpayers about direct taxes
- Talk  shows  with  senior  officers  of  the  I.T.  Department  in  the  form  of  'Samvaad' sessions on YouTube
- Facilitation of taxpayers through setting up of Aayakar Sampark Kendra (ASK) - single window system for delivery of taxpayer services
- Launch of mobile app (available on Android/IOS platform) and responsive version of the Tax payer Services (TPS) section at the national website called 'Aaykar Setu' to facilitate online payment/calculation of the taxes, removal of grievances etc.
- Helpdesk kiosks in Taxpayer Lounges
- Publishing of brochure on various aspects of income tax.

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