| During a meeting with the Central Board of Direct Taxes (CBDT), the income tax department, Mumbai division, suggested this as one of the measures to bolster tax collection in 2006-07. |
| Levying of tax on co-operative banks and raising the ceiling of minimum alternate tax are likely to help in boosting collections. |
| However, the department has suggested lowering of 2006-07 target for Mumbai to Rs 64,000 crore from Rs 69,548 crore. |
| This is because, with banks and oil companies not expected to do well, the tax collection this year in all probability would fall short of the target, said official sources. These sectors make up for more than 80 per cent of the total tax collection from Mumbai circle. |
| The expectations of subdued performance is also reflected in the dismal performance of corporates and banks in the first quarter advance tax payments, he added. |
| Indian Oil Corporation, which used to be the lead tax payer, is understood to have not paid advance taxes in the first quarter of 2006-07 following a loss of around Rs 5,000 crore. |
| Oil companies are suffering losses as the rise in international crude prices has not been fully passed on to retail customers. |
| The Mumbai zone of the Income tax department had collected Rs 53,000 crore in 2005-06 against a target of Rs 57,700 crore. It had collected around Rs 42,000 crore in 2004-05. |
| In 2005-06, advance tax payments for the fourth quarter was a major contributor to the total annual collections. Indian Oil Corporation paid Rs 542 crore, next only to Rs 655 crore by Life Insurance Corporation. |
| IOC had not paid advance tax in the first and the third quarters of 2005-06. It paid a small amount of Rs 67 crore in the second quarter of 2005-06. |
| The country's largest oil marketing company had paid Rs 1,384 crore as tax in 2004-05. |
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