“It is a fact that the net direct tax collection for the FY 2019-20 was less than the net direct tax collection for the FY 2018-19. But this fall in the collection of direct taxes is on expected lines and is temporary in nature due to the historic tax reforms undertaken and much higher refunds issued during the FY 2019-20,” the CBDT said.
NEW DELHI: Gross direct tax collections for 2019-20 fell almost 5% at Rs 12.33 lakh crore against the previous year’s Rs 12.97 lakh crore, the Central Board of Direct Taxes said on Sunday.
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“This fall in the collection of direct taxes is on expected lines and is temporary in nature due to the historic tax reforms undertaken and much higher refunds issued during the FY 2019-20,” CBDT said in a statement.
The board attributed the fall in collections to a combination of factors, including 14% year-on-year increase in refunds issued, cut in the corporate tax rate to 22%, reduction in minimum alternative tax (MAT) to 15% for existing units, reduced rate of 15% for new manufacturing units, increase in standard deduction to Rs 50,000, and income tax exemption for people earning up to Rs 5 lakh a year.
Source: Economic Times
