New Delhi, June 7 (IANS) In a bid to allay the concerns over falling direct tax collections and slower rate of investments in the country despite the recent tax reforms, the Finance Ministry on Sunday said that the fall in direct tax collections is temporary and a result of reform measures and tax benefits.
In a statement, the ministry said that there are reports in a section of media that the growth of direct taxes collections for FY 2019-20 has fallen drastically and buoyancy of the direct tax collections compared with the GDP growth has reached negative.
It said that the reports “do not portray the correct picture regarding the growth of direct taxes”.
It noted that although the net direct tax collections for FY 2019-20 was less than the net direct tax collections for FY 2018-19, this fall is on expected lines and temporary only due to the “historic” tax reforms undertaken and much higher refunds issued during FY 2019-20.
“This fact becomes more apparent if we compare the gross collections (which removes anomalies created by the variation in the amount of refunds given in a year) after taking into account the revenue foregone estimated for the bold tax reforms undertaken, which have a direct impact on the direct tax collections for FY 2019-20,” it said.
The ministry also said that in FY 2019-20, the total refunds were Rs 1.84 lakh crore compared with Rs 1.61 lakh crore in FY 2018-19, a 14 per cent increase year-on-year.
As per the government, steps such as corporate tax rate cut for all existing domestic companies, incentive for new manufacturing domestic firms, reduction in MAT rate and IT exemption for individuals earnings income up to Rs 5 lakh caused a revenue impact of Rs 1.45 lakh crore for corporate tax and Rs 23,200 shoot March.”
The actress, who recently gained a fan following of 14 million on the photo-sharing website, will soon be seen in a cross-border romantic-comedy with actor Arjun Kapoor.
The film is directed by debutant Kaashvie Nair and produced by John Abraham, Nikkhil Advani, and Bhushan Kumar.Rakul Preet will also be seen in Kamal Haasan’s ambitious upcoming film “Indian 2”, which co-stars Kajal Aggarwal and Vidyut Jammwal.
–IANS
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