CBDT Chairman Letter

Subject: Enhanced efforts for maximization of direct tax collections- Special efforts for collection of Regular Assessment Tax.*

SUSHIL CHANDRA

Chairman, CBDT & Special Secretary to the Government of India

GOVERNMENT OF INDIA

Ministry of Finance/Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi-1 10001

E-mail : chairmancbdt@nicin

Tele : 23092648 & Telefax 23092544

F. No. 380/02/2018-IT (B)

Dated: 4th January, 2019

Dear Principal Chief Commissioner of Income-tax,

Subject: Enhanced efforts for maximization of direct tax collections- Special efforts for collection of Regular Assessment Tax.

The position of direct tax collections at the end of December, 2018 shows that as against the target growth rate of 14.7%, net collections are growing at the rate of 13.6%. The position of growth in gross collections is marginally better at 14.1% but still below the required rate for achieving the Budget Estimates of Rs. 11,50,000 crore.

2. On review of the trends of growth under different Minor Heads, it is noted that the growth in collection under Regular Assessment Tax (recovery from arrear and current demand) is extremely low at 1.1% as compared to 15.6% growth during the corresponding period last year. Most of the Regions are, in fact, showing negative growth under Regular Assessment Tax (details attached).

This is a matter of serious concern and concerted efforts are now required to be made to drive up recovery from arrear and current demand.

With a view to maximize tax collections in general and collections under Regular Assessment in particular, the following strategies need to be implemented in this quarter:

3. Other strategies depending upon the specific characteristics of the region should also be adopted so as to increase collections and ultimately achieve the budget target.

With best wishes

Yours Sincerely,

Sushil Chandra