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Rediff.com  » Business » Corporate tax mop-up spurts in small towns

Corporate tax mop-up spurts in small towns

By K Ram Kumar & Subhomoy Bhattacharjee in Mumbai/New Delhi
May 19, 2003 13:09 IST
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The growth in corporate tax collection in 2002-03 was the highest in Patna, Kanpur and Allahabad, even as Kolkata topped the list in terms of the number of direct tax assessees.

With 2.3 million people, Kolkata had the highest number of direct tax assesses in 2002-03. Mumbai was second with 2.24 million, and Delhi third with 2.03 million.

Three of the revenue department's 24 zones -- Allahabad, Patna and Kanpur -- reported more than 100 per cent growth in corporate tax collection in 2002-03. However, on the income tax front, four zones -- Bhopal, Amritsar, Kanpur and Bhubaneshwar -- reported lower collection.

Corporate tax collections from the Allahabad zone went up 475 per cent to Rs 44.33 crore (Rs 7.71 crore in 2001-02). Patna followed with a 374 per cent surge at Rs 29.08 crore (Rs 6.14 per cent) and Kanpur with a 167 per cent growth at Rs 53.57 crore (Rs 20.07 crore).

Replying to a question on income tax assessees in the Lok Sabha, Minister of State for Finance Ginjee Ramachandran said there were 31.6 million tax assesses in the purview of 46 chief income tax commissioners at the end of December 2002.

In regard to the number of direct tax assessees, Hyderabad with 1.43 million and Chennai with 1.2 million were in the fourth and fifth positions, respectively, in 2002-03. Bangalore had 1 million people paying direct taxes.

Mumbai continues at the top in regard to corporate tax collection. The city accounted for 42 per cent (Rs 19,341.78 crore) of the total corporate tax collection, a rise of 26 per cent from the previous year.

In 2002-03, the country's 24 zones logged an overall growth of 27 per cent at Rs 46,251.09 crore (Rs 36,469.68 crore in 2001-02). New Delhi and Meerut accounted for 17 per cent (Rs 7,762.6 crore) and 10.24 per cent (Rs 4,740.12 crore), respectively, of the total corporation tax collection. In 2001-02, the figures for New Delhi and Meerut were Rs 7,007.24 crore and Rs 3,910.68 crore, respectively.

Bhopal, with a 17 per cent drop in income tax collection, saw the biggest fall among the 24 zones. Income tax collection from the zone decreased from Rs 999.36 crore in 2001-02 to Rs 828.66 crore in 2002-03.

In the case of Amritsar, collections fell by 12.81 per cent to Rs 200.56 crore.

Kanpur's income tax collection was in contrast to its performance in the corporate tax front. Its income tax mop-up was lower by 4.98 per cent at Rs 208.97 crore from Rs 219.92 crore in 2001-02. Bhubaneshwar reported a drop of 4.66 per cent from Rs 351.87 crore to Rs 335.47 crore.

Mumbai continues to lead in regard to income tax collection also, accounting for 24.6 per cent (Rs 8,613.45 crore) of the total collection of Rs 35,005.03 crore. In 2001-02, the total collection stood at Rs 32,004 crore (Rs 320.04 billion).

Mumbai was followed by New Delhi and Chennai, which accounted for 14.64 per cent (Rs 5,126.86 crore) and 8.38 per cent (Rs 2,935.5 crore), respectively, of the income tax collection. Bangalore was next with a 8.36 per cent (Rs 2,928 crore) share.

Shillong logged the maximum year-on-year growth of 40.27 per cent at Rs 827.52 crore in regard to growth in collections for both income and corporate taxes. It was followed by Allahabad, with a 28.88 per cent rise to Rs 438.23 crore (Rs 340.04 crore). Collections from Nagpur grew 25.05 per cent to Rs 680.67 crore (Rs 544.30 crore).

According to B Swarup, member of the Central Board of Direct Taxes, the number of permanent account numbers allotted in 2002-03 surged by 120 per cent to 5.87 million from the previous year, even as the number of assessees increased by 20 per cent to 34 million.

"Going by economic potential, the number of assessees should be in the region of 50-100 million," said Swarup.
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K Ram Kumar & Subhomoy Bhattacharjee in Mumbai/New Delhi
 

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