The Hindu Business Line : I-T collections in AP set to cross Rs 4,000 crore

THE Income Tax Department in Andhra Pradesh circle has recorded a 42 per cent increase in overall tax collection in the first three quarters ended December 31, 2003., This is the second highest recorded in the country and the region is on course to cross the Rs 4,000-crore mark this financial year.

The Chief Commissioner of Income Tax, Mr. P.A. Chowdary, said that the Andhra Pradesh region recorded total tax collection of Rs 2,521 crore as against Rs 1,770 crore during the nine months period ended December 2002. This includes both income tax and corporation tax. As against the total tax collection target of Rs 3,438 crore, we expect to cross the Rs 4,000 crore mark this year riding on good performance by companies reflected through the corporate tax collection.

The growth of 42 per cent in Andhra Pradesh was next only to combined Karnataka and Goa circle, which recorded about 45 per cent growth this year. This is significantly higher compared to the all-India average of 23 per cent growth for the nine months period ended December 31, 2003. The growth is slightly higher in Karnataka as many banks are headquartered in Bangalore, he explained.

With regard to Andhra Pradesh, while the State Bank of Hyderabad had contributed about Rs 270 crore, Andhra Bank has filed Rs 200 crore. Significantly, the corporate tax collections have seen an impressive growth of 59 per cent and the income tax collections growth stood at 30 per cent higher than last year. This buoyancy is set to reflect in the fourth quarter where the tax collection is normally more, he said.

Giving details of tax patterns and assessees, Mr Chowdary said while the tax base in 1999-2000 consisted of 9.53 lakh assessees, the same figure till December 2003 stood at 17.85 lakh, thereby reflecting a growth rate of 87 per cent.

With regard to the recent announcement about exemption of filing returns for those having less than Rs.1.5 lakh income per annum, Mr Chowdary said this may mean slight drop in the overall income tax assesses but not necessarily a drop in income tax collections.

With regard to permanent account number (PAN), Mr Chowdary said the allotment of PAN was outsourced by the Government to UTI Investors Services Ltd (UTIISL) with effect from July 1, 2003. So far UTIISL has printed about 1.7 lakh cards and additional 1.76 lakh cards are to be printed shortly. However, there is no pendency of PAN applications. PAN applicants can call up and get the number, which they can quote in various transactions.

Following the directions of the Central Board of Direct Taxes, Andhra Pradesh circle was the first among others to have implemented the scheme of processing of all income tax returns within four months of their filings and issue of all refunds within this period, he said.

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