Will exceed direct tax collection target for FY25: CBDT chief

New Delhi: The government expects to exceed its ₹22 trillion direct tax collection target for this financial year, going by the current trend in tax receipts, Central Board of Direct Taxes (CBDT) chairperson Ravi Agarwal said on Monday. 

“It is hoped and we are confident that we will not only meet the budget target, but will also exceed the target. The trend in tax collection is very positive for both corporate and non-tax collections. Refunds are also issued promptly,” Agarwal told reporters at the international trade fare in the capital.

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The Centre’s direct-tax collection after tax refunds has grown by 15.41% to ₹12.1 trillion so far this financial year, CBDT said earlier this month. This represents 55% of the ₹22 triliion target for the full financial year. 

The 15.41% growth in net-direct-tax revenue collected so far this year is faster than the 12.8% growth rate for the fiscal projected in the full-year budget presented in July. This gives comfort to policymakers on achieving the full-year target. 

Nudging taxpayers

Agarwal also said the government is nudging tax payers who have not disclosed their foreign assets, to update their tax returns.

“Under automatic exchange of information, we get information about foreign assets. Some people have not declared it… In the case of high value assets, we are emailing and sending text messages. If some tax payer has not disclosed their foreign assets, they have the opportunity to declare it by 31 December,” he said. 

Also read |  Centre’s direct tax collection performance goes up on all counts

Agarwal said lack of awareness may be the reason behind people not reporting foreign assets. He, however, did not give the number of tax payers who have not made this declaration or the value of such undisclosed assets detected.

On Saturday, CBDT launched a ‘compliance-cum-awareness campaign’ to assist taxpayers to accurately complete the schedule ‘foreign assets’ and to report income from foreign sources in their income tax returns filed in the current assessment year. 

Compliance mandatory

Compliance with this schedule is mandatory under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which requires the full disclosure of foreign assets and the income, the tax department said last week.

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As part of this campaign, the tax authority is sending messages to individuals identified through information received under bilateral and multilateral agreements, which indicate that they may hold foreign accounts or assets, or have received income from foreign jurisdictions. 

By leveraging data obtained through the Automatic Exchange of Information (AEOI), the department is working to create a more efficient, taxpayer-friendly system, CBDT said on Saturday.