New Delhi, Feb 5 (UNI) With revenue collections through personal income tax likely to touch Rs 87,570 crore, increasing by Rs 5,060 crore during fiscal 2007-08, the number of tax payees are also expected to jump by five million to 30 million.
According to an Assocham study, the income tax collection amount for the Finance Ministry will increase by 44.7 per cent by 2010, touching Rs 1,19,443 crore with number of tax payees exceeding over 45 million.
''The reason for projected growth, both in terms of income tax volumes and number of tax payees, would be mainly on account of rising levels of income, which will widen the tax base and voluntary compliance of income-tax payment,'' said chamber President Venugopal N Dhoot.
A three-fold increase is expected in the income tax revenue generation for 2015 from the level of 2006-07 to touch Rs 2,59,522 crore as a new income-tax code in expected to be put in place in next few years which will further simplify procedures, reduce bureaucratic hassles and make income tax collection methods much more simpler for the tax payees to honour their constitutional obligation, Mr Dhoot added.
The share of income tax in the tax revenue to the government has already shot up to 17 per cent from 10 per cent in the last 15 years.
The number of tax payees will increase as the openness in the administrative system becomes more transparent and employment opportunities.
The corporate tax is expected to reach Rs 2,04,784 crore by the year 2010 from Rs 14,6497 crore in 2006-07 and register a growth of nearly 40 per cent.
The revenue from corporate tax is expected to grow by over 3.5 times to Rs 5,21,630 by 2015, depending as to how the government executes its promise of putting GST in place by 2010, the Chamber said.
There have been drastic changes in the rates of direct and indirect taxes, thereby, altering their respective shares in the total tax revenue over the last 15 years period following the initiation of tax reforms in 1991, Mr Dhoot said.
Changes in tax rates, increase in the tax base, introduction of new taxes and simplification of laws and procedures pertaining to the already existing ones has led to an increase in direct tax revenue of the government, he added.
The share of direct and indirect taxes in the gross tax revenue over the last 15 years post-liberalisation period, the shares of direct taxes and indirect taxes in the total tax revenue were 22.5 per cent and 73 per cent respectively, but now they have almost come at par in the last fiscal 2006-07.
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