Revenue Secretary Sanjay Malhotra said that there is full scope for increase in both GST and Income Tax and the government is moving in this direction by using technology. He believes that in the next two years the number of people filing Income Tax Returns (ITR) can touch the level of 10 crores. In the current financial year 2023-24, the number of people filing ITR has crossed the figure of eight crore.
Estimate of 13 percent increase in direct taxes
He said that in the coming financial year 2024-25, direct tax is expected to increase by 13 percent and indirect tax by 12.5 percent and accordingly, the total tax collection will increase by 11.5 percent in the next financial year. Malhotra said that currently it is being seen that there is no match between the sale of the item and the purchase of the item. Purchases are not shown as much as sales of the item are shown.
1.85 lakh crore figure in the financial year
This matching is not happening due to some legitimate and some illegitimate reasons. We will stop this. Right now many items are not under the purview of GST, we will try to bring them also. The average monthly collection of GST in the current financial year is Rs 1.68 lakh crore which may cross Rs 1.85 lakh crore in the next financial year.
On the expectation of taxpayers getting more exemption in income tax under the new income tax system, Malhotra said that only last year, tax exemption was announced under this system. It’s been just one year now. Its impact will have to be seen for some time for tax stability.
Changes can be made in import duty in the full budget
Reduction in import duty on many manufacturing related items was expected in the budget. But when asked about this not happening, the Revenue Secretary said that in the full budget to be presented in July, changes can be made in the import duty of goods as per the need. He said that just a day before the budget, we had announced reduction in import duty of mobile phone parts.
