I-T target hits record tax refund hurdle

Direct tax collection likely to fall short of Rs 8.47 lakh crore Budget target

Record tax refunds by the income tax (I-T) department so far this financial year (2016-17) to companies and individuals has adversely impacted the direct tax collection figures. 

With the year ending this month, the collection figures indicate that the finance ministry is unlikely to meet its ambitious collection target, according to two I-T department officials.

According to tax department data, total direct tax collection at the end of February was Rs 6.13 lakh crore, or 72.4 per cent of the full year’s target of Rs 8.47 lakh crore. In 2015-16, the department had collected Rs 5.55 lakh crore by February,