FY14 target missed: I-T dept counts on last-minute collection

Financial year 2013-14 has almost come to a close, yet the I-T department is hoping to collect at least Rs 45,800 crore (Rs 458 billion) in this week by way of  advance tax.  

Owing to slowdown, advance tax collections this year grew 8.7 per cent to Rs 2.9 lakh crore (Rs 2.9 trillion), from Rs 2.66 lakh crore ( Rs 2.66 trillion) last year.

The income-tax department is still hopeful of meeting its revised direct tax collection target of Rs 6.36 lakh crore (Rs 6.36 trillion) on the back of last-minute payments.

Central Board of Direct Taxes (CBDT) Chairman R K Tewari told reporters, “We are hopeful of achieving the revised estimate for 2013-14. Our officers are working 24x7 to see the tax collection target is met."

As on March 22, the government has collected Rs 5.82 lakh crore (Rs 5.82 trillion) in direct taxes, 13.6 per cent higher than the last year’s, but still short of the target by Rs 45,800 crore (Rs 458 billion).

It is expecting some more revenue by way of advance tax in the remaining one week of the year. Refunds during the period grew 13.6 per cent to Rs 84,999 crore (Rs 849.99 billion), against Rs 80,729 crore (Rs 807.29 billion) in the last financial year.

The tax department is planning to further simplify e-filing of returns.

The e-filing of returns in FY14 saw an increase of 40 per cent with 25.6 million online returns being filed till March 22, compared with 18 million a year ago.

Asked about transfer-pricing disputes, Tewari said CBDT would sign some more advance pricing agreements (APAs) with multinational companies before the end of the current financial year.

Some APAs are likely to be signed on March 31. The government has so far received more than 146 applications from companies to decide in advance on an appropriate transfer-pricing methodology for a set of international transactions in future.

The CBDT chairman said the department had not received a very good response on safe harbour rules, and was examining the reasons.

Asked about the Nokia tax case, he said the company had not yet come to CBDT with a concrete proposal to settle its row with the department.