The Income Tax Department has been strategizing to track tax payments by companies as well as review sectoral growth trends and quarterly balance sheets of India Inc. The move is triggered by a meagre growth in first quarter corporate tax collections.
Advance tax payments by real estate companies, banks, state power generation, mining sector and transmission utilities will be more closely watched. "Monitoring of the advance tax payment by the corporates should be one of the major focus areas of the field formations…for the achievement of the Budgetary target," it said, noting that the top 1,000 advance tax payer companies of the country contributed 76 per cent of the overall corporate advance tax of ₹2,95,579 crore in 2015-16.
The real estate companies may be assessed on a turnover basis for transactions relating to land or buildings. It has further said that companies are liable to pay a minimum alternate tax and asked field formations to monitor the implementation of this provision.
The CBDT has also asked field formations to co-relate the quarterly financial statements of large and medium corporations available in the public domain under the Companies Act with the advance tax paid by them for the relevant quarter.
Further, the Income Tax Commissioner has been asked to identify companies and funds in their charge which are liable to pay Dividend Distribution Tax and monitor the timely payment of tax for the year.
"Sectoral analysis of the growth trend of various industries should be done and individual cases showing large variation should be monitored," it further said, adding that income tax officials should also frequently interact with industry and trade associations and professional bodies to explain the tax policies as well as receive feedback on the financial condition of various sectors.
"Only concern for us today is the corporate sector collection. That is not up to the mark," CBDT Chairman Atulesh Jindal had said earlier this week.
For 2016-17, the Centre's gross direct tax collection target is pegged at ₹16,30,888 crore while the gross corporate tax collection is estimated at ₹4,93,923 crore. However, in the first quarter - after the first instalment of advance tax payments, gross corporate tax collections grew 13.5 percent thought the net corporate tax collections mop-up was just 4.43 per cent.
IT department tracking advance tax payments
By IndianMandarins - 2016-07-20 09:45:47
The Income Tax Department has been strategizing to track tax payments by companies as well as review sectoral growth trends and quarterly balance sheets of India Inc. The move is triggered by a meagre growth in first quarter corporate tax collections.
Advance tax payments by real estate companies, banks, state power generation, mining sector and transmission utilities will be more closely watched. "Monitoring of the advance tax payment by the corporates should be one of the major focus areas of the field formations…for the achievement of the Budgetary target," it said, noting that the top 1,000 advance tax payer companies of the country contributed 76 per cent of the overall corporate advance tax of ₹2,95,579 crore in 2015-16.
The real estate companies may be assessed on a turnover basis for transactions relating to land or buildings. It has further said that companies are liable to pay a minimum alternate tax and asked field formations to monitor the implementation of this provision.
The CBDT has also asked field formations to co-relate the quarterly financial statements of large and medium corporations available in the public domain under the Companies Act with the advance tax paid by them for the relevant quarter.
Further, the Income Tax Commissioner has been asked to identify companies and funds in their charge which are liable to pay Dividend Distribution Tax and monitor the timely payment of tax for the year.
"Sectoral analysis of the growth trend of various industries should be done and individual cases showing large variation should be monitored," it further said, adding that income tax officials should also frequently interact with industry and trade associations and professional bodies to explain the tax policies as well as receive feedback on the financial condition of various sectors.
"Only concern for us today is the corporate sector collection. That is not up to the mark," CBDT Chairman Atulesh Jindal had said earlier this week.
For 2016-17, the Centre's gross direct tax collection target is pegged at ₹16,30,888 crore while the gross corporate tax collection is estimated at ₹4,93,923 crore. However, in the first quarter - after the first instalment of advance tax payments, gross corporate tax collections grew 13.5 percent thought the net corporate tax collections mop-up was just 4.43 per cent.
