Direct tax officials seek cut in collection target

Slide in investment raises fears of lower mop up of direct tax this financial year

The Centre, struggling to rein in its fiscal deficit at 3.2 per cent of gross domestic product (GDP), faces worries on the direct taxes front too.

The Central Board of Direct Taxes (CBDT) has asked for a lower collection target than that given in the Budget Estimates this financial year, owing to subdued economic activity.

Continued weakness in investment was expected to impact corporation tax collections, prompting the department to seek a lowering of the steep target of Rs 9.8 lakh crore, 15.7 per cent higher than last year’s collection, said sources. The department has asked for a reduction of