Direct tax collection on a rise: Arun Jaitley
While direct tax collections last year were over Rs6 lakh crore, this year govt plans to collect Rs7.36 lakh crore
New Delhi: Reasonable tax rates lead to voluntary compliance in paying taxes and government has means like search and seizure to make people pay their dues, the Lok Sabha was informed on Friday.
Finance minister Arun Jaitley said while direct tax collections last year were over ₹ 6 lakh crore, this year government plans to collect ₹ 7.36 lakh crore. Responding to a supplementary, he said a reasonable tax rate helps increase voluntary compliance whereby people pay their taxes. But to ensure there is no evasion, government uses means like search and seizure to make people comply.
In the last three fiscal years, direct tax collection of the government have been increasing with annual growth rates of 10.76%, 13.10% and 14.29%. He also said direct tax to gross domestic product (GDP) ratio has been showing rising trend and the same has been 5.48%, 5.52% and 5.62% for the three financial years of 2011-12, 2012-13 and 2013-14. He said both legislative and administrative measures are taken from time to time to combat tax evasion.
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