New Delhi, Feb. 4: The government today asked companies to pay advance tax in time so that the revised revenue target of Rs 4 lakh crore for the current fiscal is met.
Direct tax collections have been Rs 2.5 lakh crore in the first nine months of this fiscal, growing at 8.5 per cent over the corresponding period of the previous year. Personal income tax has seen a decline of 0.41 per cent.
Last month, finance minister Pranab Mukherjee had asked the income tax department to make all efforts to achieve the new direct tax target.
The Central Board of Direct Taxes (CBDT) today called a meeting of the top officials of the I-T department to discuss measures for mopping up the remaining collections for the year by March.
The government had initially budgeted direct tax collections at Rs 3.7 lakh crore; the new target was set by the finance ministry in December.
The CBDT is planning to monitor tax payments of loss-making companies liable to a minimum alternate tax rate of 15 per cent and persuade them to make such payments as advance tax during the current fiscal. It will also monitor tax deducted at source on deposits by private entities, state governments and local bodies.
Advance tax payments of top companies will be monitored and they will be persuaded not to defer such payments as self-assessment tax for the next fiscal, said CBDT officials. Focus will also be on the collection of tax arrears.