The Government has foregone revenue worth ₹5.73-lakh crore in 2013-14 on account of various tax concessions given to corporates, charitable trusts and individual taxpayers.

The revenue forgone does not include export promotion-related concessions, which amount to an additional ₹45,786 crore, according to the information presented in Parliament as part of the Budget discussion.

Interestingly, the revenue foregone last fiscal is just a tad lower that the planned expenditure of ₹5.75 lakh crore for the financial year 2014-15.

Corporate tax Tax concessions given to corporates were up 11 per cent last fiscal at ₹76,116 crore (₹68,720 crore in FY13).

Of the total of 618,806 companies that filed tax returns, 334,109 (53.99 per cent) reported profit before tax of ₹10.87-lakh crore and taxable income of ₹7.50-lakh crore. About 250,865 companies reported loss of ₹3.59-lakh crore. In all, 284,697 companies showed no profit and hence did not pay any tax.

The effective tax rate for corporates was at 22.44 per cent against 22.85 per cent in 2011-12. The statutory tax rate was at 32.445 per cent.

The effective tax rate of 272 companies with profit before tax of over ₹500 crore was lower at 20.97 per cent. Companies with up to ₹1 crore profit-before-tax paid tax at an effective rate of 26.73 per cent.

The loss of revenue to the Government by way of concession to individual investors was higher by 21 per cent in FY14 at ₹33,293 crore (₹27,627 crore).

The concession on account of investments in different tax savings instruments, such as repayment of principal of housing loan and payment of tuition fees for children under Section 80C of the Income-tax Act, was the single largest tax sop, at ₹27,949 crore (₹23,192 crore), claimed by individual taxpayers.

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