CBDT chief says direct tax collections may exceed budget targets
The government had a direct tax collection target of ₹22.1 lakh for the current financial year.
In an interaction with CNBC-TV18, he said the current trends in tax revenues reflect the growth in economic activity, with areas like corporate tax, non-corporate tax, and Securities Transaction Tax (STT) showing significant increases.
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Taxes such as STT and corporate tax are closely tied to the overall economic environment, where increased market activity and earnings contribute to higher revenues. This along with recent changes in securities and capital gains taxes have led to an 89% increase in STT collections, he said.
Speaking about the government’s efforts to simplify the Income Tax Act, 1961, Agrawal said previous attempts were part of an ongoing process and not failures.
The current focus is on simplifying processes and language to make compliance easier for taxpayers and reduce litigation.
This exercise does not include rate changes, which will be considered separately when needed. Agrawal added that the government has invited suggestions from taxpayers to ensure an inclusive approach.
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