- According to the Central Board of Direct Taxes(CBDT),Direct tax collections have fallen short by Rs 60,000 crore.It has failed to meet the revised target of Rs 12 lakh crore for 2018-19 fiscal on account of poor personal income tax collections.
- However,tax collections has risen by 13.5% making it the third straight year of strong growth in collections.Further,shortfall in tax collections may not be limited to direct taxes as officials has said that the central GST collections could be around Rs 35,000-40,000 crore short of target,despite a record haul in March,2019.
- Direct taxes are levied on a person’s or a firm’s income or wealth.The incidence and impact of the direct tax fall on the same person.Example: Income Tax,Corporation Tax,capital gains tax and Wealth Tax.The impact of direct tax is not Inflationary.
- CBDT is a statutory authority that functions under the Central Board of Revenue Act,1963.It is a part of the Department of Revenue in the Ministry of Finance.It provides inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.
