Circular No. No.402/92/2006-MC (13 of 2011)

Net direct tax collections during April-May, 2011

What this is

Circular No. No.402/92/2006-MC (13 of 2011) was issued by the Central Board of Direct Taxes on 6 June 2011. Its subject is Net direct tax collections during April-May, 2011.

What it does

Reports the direct tax collection figures for April and May 2011. Net collections stood at Rs. 12,954 crore against Rs. 24,878 crore in the same period of the previous year, a fall of 47.93 per cent, while gross collections rose 37.34 per cent to Rs. 50,405 crore from Rs. 36,702 crore. The fall in net collection is attributed to refunds rising 216.74 per cent to Rs. 37,451 crore from Rs. 11,824 crore, with more than 40 lakh refunds issued, against a record 85 lakh refunds in the previous year. The budget estimate for direct tax collection for the year is Rs. 5,32,651 crore.

Why it was issued

It is a routine monthly statement of collection figures and gives no other reason.

Who it reaches

Readers following departmental collection and refund performance
Taxpayers awaiting refunds in that period

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

Net direct tax collections during April-May, 2011
No.402/92/2006-MC (13 of 2011)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, dated the 6th June, 2011

PRESS RELEASE

Net direct tax collections during the first two months of the current fiscal (April & May 2011) stood at Rs.12,954 crore, down from Rs.24,878 crore in the same period last fiscal, a decline of 47.93 percent. Gross direct tax collections were, however, up by 37.34 percent at Rs.50,405 crore as against Rs.36,702 crore.

The decline in net collection was on account of an increase of 216.74 percent in tax refunds, which stood at Rs.37,451 crore as against Rs.11,824 crore last year. More than 40 lakh refunds have been issued in the current fiscal. Last fiscal, a record 85 lakh refunds had been issued by the Income Tax department even while it met the revised estimates target of Rs.4,46,000 crore.

The budget estimates for direct tax collections are fixed at Rs.5,32,651 crore for the current fiscal.

What to watch

This is a press release of collection statistics, not a circular, and it is not Board authority on any question of tax.
It lays down nothing and confers no right; a refund claim cannot be founded on it.
The figures are for two months of one year and have no continuing significance.
The comparison of net and gross collection turns entirely on the pace of refund issue, which is an administrative matter.

Where you meet it

Not in any proceeding; it is of use only as a data point on departmental refund performance in 2011.

← Circular No. DGBA. CDD. No. H-8545/15.15.001/2010-11 · Circular No. No.402/92/2006-MC (12 of 2011) →

A circular binds the department, not you and not a court. The Board issues a circular to its own officers. An assessee may hold the department to a circular that helps him; the department cannot hold an assessee to one that hurts him, and the Tribunal and the courts decide the law for themselves.

Source: the Income Tax Department’s own published text — its page for this instrument.