Compliance
Direct Tax

Report No. 15 of 2013 - Compliance Audit on Direct Taxes-Union Government, Department of Revenue

Date on which Report Tabled:
Fri 23 Aug, 2013
Date of sending the report to Government
Government Type
Union
Union Department
Direct Tax
Sector Taxes and Duties

Overview

This Report discusses important issues in direct taxes using data from Finance Accounts, departmental accounts, departmental MIS, Economic Survey and findings of compliance audits.Share of direct taxes in gross tax receipts increased from 38.42 per cent (RS 0.83 lakh crore) in FY 03 to 55.56 per cent (RS 4.94 lakh crore) in FY 12 indicating progressive tax system.

Two major components of Direct taxes viz. Corporation Tax increased from RS 46,172 crore in FY 03 to RS 322,816 crore in FY 12 and Income Tax increased from RS 36,866 crore in FY 03 to RS 164,525 crore in FY 12.Voluntary compliance declined for corporate (from 84 to 79 per cent) as well as non-corporate (from 94 to 90 per cent) assessees during FY 03 to FY 12. During the same period, average annual growth of corporate and non-corporate assessees' base was 6.7 per cent and 3.0 percent respectively.

We noticed that the actual collection of direct taxes exceeded the budget estimates in all the years except in FY 03, FY 05, FY 06, FY 09 and FY 12. The extent of actual collection exceeding the budget estimates ranged from 2.0 per cent in FY 10 to 16.7 per cent in FY 08. However, the revised estimates were found realistic.

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