Gujarat I-T collection on the lower side

The lower income tax collection and the poor tax compliance are worrying matters of concern and should be addressed, said N K Jain, Chief Commissioner of Income Tax (CCIT), Gujarat.

Urging industries associations including the Gujarat Chamber of Commerce and Industry (GCCI) for a better compliance rate, Jain said, "Gujarat is seventh in the country as far as collection of Income Tax is concerned. The so called feel good factor has shown results in other parts of the country, but it does not seem to have translated into money here in Gujarat. This is definitely not acceptable to 'Vibrant Gujarat'," Jain observed.

The CCIT said that until February 15, the IT collection was just 63 per cent of the targeted Rs 4,275 crore for the financial year, while the national collection stood at 69 per cent of the targeted Rs 1.03 lakh crore. He hinted that the number of persons in the income tax net are still far below the actual figure.

Jain said that the industry associations should convince their members to pay up taxes, thus ensuring a cordial relationship with the IT department. "In fact, there is an interesting trend that is being observed in the state. The IT revenue growth is much slower in bigger cities than in smaller cities and towns of Gujarat," the CCIT noted.