|Chennai||Rs. 24020.00 (-0.17%)|
|Mumbai||Rs. 25020.00 (0.28%)|
|Delhi||Rs. 24450.00 (0%)|
|Kolkata||Rs. 24600.00 (-0.32%)|
|Kerala||Rs. 24050.00 (0%)|
|Bangalore||Rs. 24160.00 (-0.17%)|
|Hyderabad||Rs. 24030.00 (-0.12%)|
The ban on iron ore mining in Karnataka and Goa has hit the collections of the Income Tax department in this division. Mining, which accounted for about 14 per cent of the division’s total collections, has fallen to 2-3 per cent.
The division, which is next only to Mumbai and New Delhi in total I-T collections, hopes to see its collections touching Rs 53,000 crore for 2012-13. But, it has till now collected around Rs 32,000 crore, about 60 per cent of this year’s projected collections.
Mining at one time contributed about Rs 2,500 crore to the department’s kitty. It has fallen drastically after the Supreme Court’s ban. The I-T department is now left waiting for the issue to be sorted out in the courts, Suresh Babu, Chief Commissioner of Income Tax, Bangalore - III, said.
The focus of the directorate general of I-T during the last two years has been on mining (iron ore) and real estate sectors, where information relating to substantial tax gap was gathered by the department. It has set out on search and seizure operations.
The boom in the real estate sector in Karnataka has given the department a chance to make good the loss of revenues from mining. Of late, Bangalore and its suburbs have been witnessing a huge spurt in real estate activities. According to the directorate of intelligence, some 52,001 pieces of information relating to the period 2006-07 to 2008-09, involving substantial tax effect, is under investigation. The official concerned added that in respect to FY 2009-10 to 2010-11, the department has collected 59,984 pieces of such information with huge tax effect and these are being taken up for further verification.
About 32,000 have been issued notice. The department said it was in possession of information on large number of immovable property transactions where sellers have valued their properties much below the guideline value.
Meanwhile, the directorate has a mechanism in place to monitor and intercept movement of unaccounted cash and other valuables like jewellery through the Bengaluru International Airport, and to seize the same.
“The Chief Election Commissioner has complimented the efforts of the directorate of investigation during parliamentary and assembly elections held recently, especially in Goa, to check the movement of cash for electoral purposes,” said a senior I-T official.
The division had overtaken Chennai and Hyderabad region last year when it collected Rs 32,830 crore. The year before that it had seen collections of Rs s 30,328 crore.
One worrying development for the I-T department is the government departments themselves who are not remitting the TDS. The department is working to educate the Drawing and Disbursing Officers of the respective departments, both in Karnataka and Goa, who are responsible for remitting the TDS. “By not remitting the TDS, those responsible are denying or delaying the payment of I-T refunds. We now pay out the refunds promptly,” said K Satyanarayana, Chief Commissioner of Income Tax, Bangalore - I.