The Hindu Business Line : ‘Budget estimate on direct taxes will be met’

“The direct tax collection trends in April-June this year are encouraging. We have collected about Rs 41,154 crore in this quarter. Even if some allowance is made for refunds, we are on target for meeting the budget estimates. The Chief Commissioners who have come for the conference also agree that the budget estimate targets are achievable,” Mr Chidambaram told presspersons after addressing the 23rd Annual Conference of Chief Commissioners’ of Income Tax and Directors General of Income Tax (DGIT) here today.

For fiscal 2007-08, the budget estimate for direct taxes has been pegged at about Rs 2,67,400 crore. This is against the budget estimate of Rs 2,10,419 crore for fiscal 2006-07. The actual collections in direct taxes in fiscal 2006-07 stood at Rs 2,29,181 crore.

The inaugural session at the CCIT’s conference deliberated on how to further widen and deepen the tax base. The revenue augmentation measures include strengthening of tax deducted at source (TDS) mechanism. Mr Chidambaram announced that all corporate and tax audit assesses would have to file TDS returns only electronically from September 1. They would also be required to make e-payments of TDS from January 1, 2008.

A presentation on integrated tax profiling system (ITPS) software was also made to the Finance Minister at the conference. The ITPS is an investigation tool for the tax department and could be used for 360 degree profiling of tax assesses, a CBDT official said.

Besides liquidation of arrear demand, the conference also discussed computerisation issues and progress report on annual information reports (AIR). Mr Chidambaram said that he has advised the department to quickly complete the process of computerisation. Meanwhile, on the refund banker scheme, Mr Chidambaram said that the Government intends to roll out this scheme to more jurisdictions.

Mr Chidambaram said that Government will extend all support for modernizing the tax department.