Bihar jumps to second spot in I-T growth rate

PATNA: Bihar has grabbed the second position in the country in terms of percentage growth rate in income-tax collection. In the financial year 2010-2011, the growth rate has been 26.9%. It has been a commendable feat as compared to last fiscal when Bihar stood fifth with 19.8% growth rate.

As per the figures made available by the department, net I-T collection of Bihar and Jharkhand region during the financial year 2010-11 stood at Rs 4,263 crores against the budget target of Rs 4,079 crore. During the previous year (2009-10), the collection was Rs 3,358 crores against the target of Rs 3,170 crores. Thus, the tax collection shows a 27% growth against the last year’s 19.8%.

A unique feature about Bihar’s income-tax collection is that the contribution of tax deduction at source (TDS) has been remarkable. While TDS contributes 30% of the total tax collection in the country, its contribution is as high as 70% in Bihar. This represents a growth of 43% in 2010-11 against 24% growth rate in 2009-10 as per the statistics available with the I-T department.

As against the budget’s target of TDS collection of Rs 2,553 crore in the year 2010-2011 for the region, the actual receipt has been Rs 3,046 crore. The percentage increase with reference to the target was 19.33% as compared to last year’s 8.84% only.

Describing it as an encouraging sign, an I-T official said, “Good TDS collection is the main driving force behind catapulting Bihar to the second position from the fifth position it earlier held in terms of percentage growth of income-tax collection.”

Explaining the reasons for growth, a department official said, “The main reasons are the economic policies of the state government and the unprecedented growth in economic activities in the state. The robust growth in TDS collection is due to a number of awareness meetings with government deductors, trade associations and corporate deductors. This drive carried on regularly since 2008 has yielded positive results. In 81 cases, the non-filers were persuaded to file their returns. More than 3,000 notices were also issued to various deductors in Bihar and Jharkhand, said the official.

Source: http://timesofindia.indiatimes.com/city/patna/Bihar-jumps-to-second-spot-in-I-T-growth-rate/articleshow/8805521.cms

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