Lok Sabha Question No. 729 (UNSTARRED), answered on 2022-02-07
Subject: Income Tax Collection
Ministry: FINANCE
Asked by: Kuldeep Rai Sharma, DNV Senthilkumar. S., Amol Ramsing Kolhe, Sunil Dattatray Tatkare, Subhash Ramrao Bhamre, Supriya Sadanand Sule

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO 729

## TO BE ANSWERED ON 7 th  FEBRUARY, 2022

## INCOME TAX COLLECTION

## 729.   SHRI KULDEEP RAI SHARMA:

DR. DNV SENTHILKUMAR. S.:

DR. AMOL RAMSING KOLHE:

SHRI SUNIL DATTATRAY TATKARE:

DR. SUBHASH RAMRAO BHAMRE:

SHRIMATI SUPRIYA SULE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of income tax collection during each of the last three years and the current year;
- (b) whether the income tax collection is low during the last three years and if so, the details thereof and the reasons therefor along with the steps taken to boost the income tax collection;
- (c)  the  total  cases assigned to the National Faceless Assessment Centre after the faceless appeal scheme was launched along with the number of cases settled and the amount involved therein;
- (d) the number of cases disposed/settled under the Vivad Se Vishwas Scheme till date and the achievements made thereunder;
- (e)  the  success  achieved  after  implementation  of  Non-Filer  Monitoring  System  to identify persons who have undertaken high value financial transactions but have not filed their returns; and
- (f)  the other steps taken by the Government to bring the people earning above the exemption of income limit under the income tax net?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a)  The details of income tax collection during each of the last three years and current year is as under:

## Income tax Collection in last three years and Current year

(Fig. in Rs Crore)

| Financial year             |   Corporation tax |   Personal Income tax |   Other taxes incl. Wealth tax, Securities Transaction tax, etc.* |        Total Tax |
|----------------------------|-------------------|-----------------------|-------------------------------------------------------------------|------------------|
| 2018-19                    |            663572 |                461641 |                                                           12506.1 |      1.13772e+06 |
| 2019-20                    |            556876 |                480276 |                                                           13528.9 |      1.05068e+06 |
| 2020-21                    |            457719 |                470462 |                                                           18995.3 | 947176           |
| 2021-22 (Up to 31.01.2022) |            545498 |                485724 |                                                           22168.4 |      1.05339e+06 |

Source: Pr.CCA, CBDT

*Other taxes include Interest tax, Fringe Benefit tax, Income & Expenditure Tax etc.

- (b) The Net Direct tax collection for the financial year 2018-19 was Rs. 11,37,718.48 crores which declined to Rs. 10,50,680.56 crores during the financial year 2019-20, largely due to reduction in Corporate tax rate. By Taxation Laws (Amendment) Act 2019, the corporate tax assessees were given option u/s 115BA, u/s 115BAA and u/s 115BAB of the Income Tax Act 1961, to pay tax at lower tax rate of 25%, 22% and 15%, respectively, subject to satisfaction of certain conditions. During the financial year 2020-21, the Net Direct tax collection reduced to Rs. 9,47,176.38 crores mainly due to  impact  of  Covid-19  pandemic.  Also  in  May  2020,  the  TDS    rates  for  nonsalaried  specified  payments  such  as  interest  on  securities,  dividend  income,  rent payment, commission payment etc were reduced by 25%.

The  steps  taken  by  Government  to  boost  the  income-tax  collection  includes  the following:

- a)  Initiatives  to  promote  voluntary  income-tax  compliance  through  easing  of compliance for taxpayers.
- b)  Steps taken to promote digital transactions to create less cash economy.
- c)  Awareness programmes.
- d)  Steps taken to curb tax evasion and widen and deepen the tax base.
- e)  Other steps include making the payment of tax easier through online mode like RTGS, NEFT, Debit/credit card or Net Banking.
6. (c)    The total cases assigned to the National Faceless Assessment Centre after the date of launch of the Faceless Appeal Scheme i.e. 25.09.2020 till 03.02.2022 is 2,73,721 , out of which 1,15,037 cases have been assessed. The total demand raised in these 1,15,037 cases is Rs.  3,74,046.97 crores .
7. (d)  The primary objective of the Vivad se Vishwas Scheme, 2020, as provided in the short  title  therein  is,  ' to  provide  for  resolution  of  disputed  tax  and  for  matters connected therewith or incidental thereto '. Under the scheme, as per the information available  on  record, 1,31,939 declarations  under  Form-1  were  received  from  the taxpayers. The disputed demand under these declarations is Rs 99,658 crore . As on 25.01.2022, taxpayers in 1,16,289 cases have intimated the details of payment along  with  proof  of  withdrawal  of  relevant  appeals,  writs,  arbitration  or  dispute resolution.
8. (e)  The  Non-filers  Monitoring  System  (NMS)  project  was  implemented  from  2013 onwards to prioritise action on non-filers with potential tax liabilities. In last two cycles of  NMS  viz.  NMS-9  and  NMS-10  pertaining  to  flagging  of  non-filers  for  the assessment  year  2019-20  and  2020-21,  a  total  of  40,17,235  cases  have  been flagged, out of these 10,69,186 taxpayers have filed returns and a total of ₹ 7,318.65 crore has been collected as Self-Assessment Tax. Year wise stats are as below:
9. (f) Steps taken by the Government to bring the people earning above the exemption of income limit under the income tax net include the following:
10. (i) All the individuals having income exceeding the basic exemption limit of Rs 2.50  lakh  are  required  to  mandatorily  file  their  Income-tax  Return  (ITRs) under section 139 of the Income-tax Act, 1961, thereby bringing them under the income-tax net.
11. (ii) Other measures are:
- Pre-filling of returns to facilitate easy and accurate filing of income-tax return,
- Redesigned Form 26AS to give more information to taxpayers enabling correct income tax return filing,
- Reduction  in  Presumptive  tax  rate  for  small  business,  if  business  is through digital transactions,
- Increased rates of TDS/TCS for non-filers and for non-PAN cases.
16. (iii) Further, region-specific strategies are formulated by the field authorities for identifying  potential  non-filers  and  voluntary  compliance  is  encouraged through outreach programmes, extensive use of mass media for creating awareness and issuing statutory notices to enforce compliance.
17. (iv) E-mails and SMS reminders are issued to taxpayers to file their return and pay  their  due  taxes.  Publicity  campaigns  are  launched  on  TV  channels, Radio, Print Media, Cinema Halls and Facebook page, twitter handle of the Department to raise awareness on due dates for payment of advance tax, filing of Income Tax Returns, TDS and PAN-Aadhaar linkage.
18. (v) The Department has published more than 25 brochures covering various topics on Income-tax and other allied laws which are available in the public domain and are also distributed through Aayakar Sewa Kendras (ASK) and Taxpayers' Lounges.

| NMS     | AY      | Number of cases Flagged   | Number of ITRs filed   | Total Self- assessment Tax paid (in crore)   |
|---------|---------|---------------------------|------------------------|----------------------------------------------|
| NMS - 9 | 2019-20 | 19,38,429                 | 6,36,559               | ₹ 3,467.82                                   |
| NMS -10 | 2020-21 | 20,78,806                 | 4,32,627               | ₹ 3,850.83                                   |
| TOTAL   | TOTAL   | 40,17,235                 | 10,69,186              | ₹ 7,318.65                                   |

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