The Central Board of Direct Taxes has set a Rs 69,548-crore (Rs 695.48 billion) direct tax collection target from the Mumbai zone for the current financial year. This is almost 20 per cent higher than last year's target of Rs 57,700 crore (Rs 577 billion), of which the department could only collect Rs 53,000 crore (Rs 530 billion).
According to Indira Bhargav, the new chief commissioner of Mumbai zone, the department has already worked out a comprehensive action plan to meet the target.
Unlike previous years, the assessment and orders this year are time-bound till December and so the collections have to be made by March 31.
Earlier, the date of assessment was March 31 and collections could not be pursued rigorously as transfers of officials are done at the beginning of the financial year.
In Mumbai, special provisions have been made to monitor the income derived from equity markets and corporates.
Thus, all returns filed for securities transaction tax will be put under scrutiny assessment. Pending assessment and appeals in cases of claim of export benefits under the DEPB licence will be completed expeditiously keeping in view the proposed amendment of Section 80 HHC.
Corporates liable for paying tax on distributed dividend will be monitored to ensure timely payment.
Further, in corporate cases where audit objections have been accepted by the department, orders will be issued faster for appropriate recovery.
The income tax department had clocked an annual collection of Rs 53,000 crore for the FY06 for the Mumbai zone, against a target of 57,700 crore.
In 2005-06, the advance tax payments for the fourth quarter had been a major contributor to the total annual collections for the department. Indian Oil Corporation paid Rs 542 crore (Rs 5.42 billion), next only to Life Insurance Corporation's Rs 655 crore (Rs 6.55 billion).
The company has not paid taxes for the first and third quarter, except for a paltry sum of Rs 67 crore (Rs 670 million) in the second quarter of 2005-06.
Interestingly, the company had paid Rs 1,384 crore (Rs 13.84 billion) as taxes in 2004-05.
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