NEW DELHI : Tax collections in the current fiscal may fall short of targets by as much as ₹2 trillion on faltering economy, leaving a very little room for Finance Minister Nirmala Sitharaman for offering any meaningful reduction in personal income tax rates. "Overall, there is likely to be shortfall of ₹3.5 to 3.75 trillion in gross tax collections of the Centre. Direct tax revenues - Corporation Income Tax (CIT) and Personal Income Tax (PIT) - together as per the Budget Estimate has been pegged at ₹13.35 trillion, which is 16% higher than the Budget estimate ( ₹11.50 trillion) and 11.25% higher than the revised estimate ( ₹12 trillion). With regard to indirect tax, total amount budgeted as receipts for GST is ₹6.63 trillion for the current fiscal. This was 3.13 trillion higher than the provisional/actual net tax revenues of ₹13.37 trillion collected in 2018-19, an increase of 23.4%.

Source: Mint January 26, 2020 07:18 UTC