Revenue forgone on tax sops to biz at Rs 1.03 lakh cr in FY14

Revenue forgone due to incentives and tax exemptions to corporates increased by over 10 per cent to Rs 1.03 lakh crore in 2013-14 from a year ago.
The revenue forgone due to such incentives was at Rs 92,636 crore in 2012-13, Rs 81,214 crore in 2011-12 and Rs 83,328 crore in 2010-11. It was Rs 72,881 crore in 2009-10.
A number of tax incentives are given to businesses for a specified period of time, Finance Minister Arun Jaitley said in a written reply to the Rajya Sabha today.
"Such tax incentives are mainly in the form of profit-linked deductions, investment-linked deductions, depreciation and additional depreciation and weighted deduction," Jaitley said.

He said companies may avail such incentives in the current fiscal as well.
"In so far as direct taxes are concerned, tax incentives have been provided to promote creation of infrastructure facilities, balanced regional development, exports, generation of employment, rural development, scientific research and development," he added.
For the current fiscal, the government aims to collect Rs 7.36 lakh crore from direct taxes, up from over Rs 6.36 lakh crore collected last year.
As regards indirect tax, the collection target is over Rs 6.24 lakh crore, up 20.28 per cent over the collection in 2013-14.