homeeconomy NewsTax revenues soar despite unchanged rates — govt credits technology and compliance

Tax revenues soar despite unchanged rates — govt credits technology and compliance

By using technology and improving tax compliance, the government has managed to increase tax revenues without burdening people with higher tax rates. 

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By CNBCTV18.com Jul 24, 2023 10:34:16 PM IST (Published)

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Tax revenues soar despite unchanged rates — govt credits technology and compliance
Finance Minister Nirmala Sitharaman on Monday (July 14) revealed that even though tax rates haven't gone up in the last 3-4 years, the government has collected more tax money (revenue). They gave credit to the Central Board of Direct Taxes (CBDT) for reducing tax cheating and using technology to make tax assessments easier.

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"Prime Minister has been clear that technology is the answer to most problems and CBDT has worked on that," she said.
The government also helped small and mid-sized businesses by introducing a helpful law called Section 43(B) of the income tax act. Startups got relief too, making India a popular place for new businesses to start.
The new tax system also means that if someone earns up to 7 lakh 27 thousand rupees, they don't have to pay any income tax. She also noted that around 1 lakh income tax notices were sent and that all will be cleared by March 2024, providing relief to those who received them.
The Finance Minister promised that they are working hard to make taxes less complicated and more friendly for everyone.
Additionally, Revenue Secretary Sanjay Malhotra said that the government has been doing well in collecting taxes, except for the challenging time when the Covid-19 pandemic hit. "Tax bouyoncy has been at least 1 percent in all years expect the covid years in the last six years." 
Malhotra also mentioned that the time it takes to process tax returns has become faster, helping taxpayers get their refunds sooner.
"The average return processing has come down an average of 16 days," he added.

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