Direct tax mobilisation target realistic, says CBDT Chairman Mody

The government's direct tax mobilisation target of Rs 13.35 lakh crore during 2019-20 is realistic and achievable, Chairman of the Central Board of Direct Taxes (CBDT) P C Mody said on Tuesday.

Revenue collections in the past three years have grown between 15 and 18 per cent, he said while addressing an interactive session organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).

In the previous fiscal, direct tax collections totalled Rs 11.37 lakh crore.

Mody said interchangeable use of Permanent Account Number (PAN) and Aadhaar will help tax compliance and contribute to the ease of living for residents. However, PAN will not become redundant, he said.

The proposed scheme of faceless scrutiny will be rolled out soon, said Mody referring to pre-filled income tax returns which will leverage technology, encourage compliance and make the process of filing declaration less cumbersome for a common person.

He said tax relief measures announced in the Union Budget for 2019-20 for affordable housing will benefit a large section of society.

Finance Minister Nirmala Sitharaman has proposed interest deduction up to Rs 3.5 lakh for affordable housing priced below Rs 45 lakh as against Rs 2 lakh earlier for loans availed until March 31, 2020.

The government also plans to use several land parcels held by the Centre and public sector units to build large public infrastructure and affordable housing units.