— Photo: S. Subramanium

KEEPING IN TOUCH: Union Finance Minister P. Chidambaram inaugurating a video-conference facility of the Income Tax department in New Delhi on Tuesday.

NEW DELHI: Finance Minister P. Chidambaram on Tuesday declared that the "ambitious" revised target for direct tax collections pegged at Rs. 2,29,272 crore for the fiscal year 2006-07 would be achieved.

Launching the video conferencing facility of the Income Tax department here, Mr. Chidambaram said: "For the last year, revised estimates [direct tax collections] fixed an ambitious target of over Rs. 2,29,000 crore. I am confident that when the final data comes, we would achieve the target." As per the latest data available, the total direct tax revenue mopped up so far amounted to Rs. 2,23,797.10 crore. Of this, corporate tax accounted for the major share at Rs. 1,41,915.40 crore while the personal income tax totalled Rs. 71,011.40 crore.

Of the balance revenue, an amount of Rs. 5,331.70 crore was garnered as fringe benefit tax (FBT), Rs. 4,729.50 crore as securities transaction tax (STT) and Rs. 505.40 crore as banking cash transaction tax (BCTT). The actual figures are expected this month.

Delhi's record

After Mumbai, Delhi, as the next largest contributor of direct taxes, has so far fetched a revenue of Rs. 37,646 crore, which is about Rs. 1,000 crore short of the revised target fixed for the metro. According to a tax official, the final figures will be nearly 98-99 per cent of the new target.

Other I.T. officials from various tax circles in the country expressed confidence that the revised targets for revenue collections would be met or even surpassed. For 2007-08, the direct tax collection target has been fixed higher at Rs. 2,67,000 crore.

"All this can be achieved and more could be achieved, if we have faith in technology and keep the communications channels open, constantly upgrading the quality of information with the department and sharing such information with all field formations," Mr. Chidambaram told the Chief Commissioners of Income Tax and other officials of the Department.

The video conferencing facility launched here connects North Block, which houses the Finance Ministry, to 46 cities that are headed by the Chief Commissioners of Income Tax as also the Director-General of the National Academy of Direct Taxes.

Mr. Chidambaram said that in a growing economy higher revenue collections should be by way of direct taxes. "Therefore, [the] role of the Central Board of Direct Taxes and [the] Income Tax Department will become more and more important ... In the growing economy, more and more people will need to pay taxes, both individuals and corporates."

He detailed the various steps taken during the last three years to make the Department "more efficient, more responsive and more responsible." These included complete computerisation of the department, provision of additional manpower and vehicles, a proposal to set up centralised processing centres at Delhi, Chennai and Bangalore, making e-filing mandatory for more assessees, using information on AIRs and implementation of the tax-preparers scheme, Mr. Chidambaram said.

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