In an exclusive interview with CNBC-TV18, CBDT Chairman Ravi Agarwal revealed the department’s strategy to provide taxpayers with a special window to disclose foreign assets and rectify their returns. This opportunity, open until December 31, allows taxpayers to address potential non-disclosure issues before enforcement actions are initiated.
“It is an inclusive approach of the department, wherein we believe that and these are not notices. These are just basically intimations to the taxpayers that look like we have information and you may like to comply, and there is sufficient time available to the taxpayer to comply. This is with a philosophy that maybe they may have missed that opportunity because of not being able to appreciate the provisions of the act and therefore we have brought those provisions to their knowledge and notice and we believe that once that comes to their knowledge and notice they would comply. The opportunity is open till December 31, so we have given sufficient time for the taxpayers to appropriately respond and take a call on the compliance.”
India’s net direct tax collections have surged to ₹12.11 lakh crore as of November 10, a 15.41% year-on-year increase. The growth, driven by higher contributions from corporate and individual taxpayers, brings the government closer to its ambitious ₹22.12 lakh crore target for FY24.
Corporate tax receipts stand at ₹5.10 lakh crore, while non-corporate taxes, including personal income tax from individuals and Hindu Undivided Families (HUFs), contribute ₹6.62 lakh crore.
Securities Transaction Tax (STT) collections have also nearly doubled, reaching ₹35,923 crore. Gross tax collections increased 21.20% year-on-year to ₹15.02 lakh crore, with refunds totaling ₹2.92 lakh crore, reflecting the government’s efforts to expedite processes.
“We are very positive about the present trends in tax collection. I am hopeful, and, very sure, that we will not only achieve but exceed our targets,” said Agarwal. He attributed the strong revenue momentum to robust economic activity, which has boosted corporate earnings and market performance.
One of the most anticipated announcements in the upcoming budget is the introduction of simplified direct tax laws. On being asked what could be the contours of this simplification, especially as it will be the third time when the government in the last 10 years will be aiming at it, especially given that the last two attempts could not yield much attention. Experts have been calling those two attempts as failed attempts since a simplification could not be announced based on the reports submitted by government-nominated panels.
“This is an ongoing process. The recommendations from earlier attempts were incorporated into the Tax Act when the time was right. We are working very hard this time and are hopeful of meeting both government and taxpayer expectations,” he said.
On whether rate changes could be part of the simplification, Agarwal declined to comment, focusing instead on making compliance easier. “We are identifying areas for simplification—simple language, simple processes—that’s our goal,” he stated.
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