Audit Reports

Direct Tax

Overview

Direct tax collections increased from RS 1,65,216 crore in 2005-06 to RS 3,78,063 crore in 2009-10 at an average annual rate of growth of 32.2 per cent. The rate of growth of tax collection has decelerated in 2008-09 and has since marginally improved in 2009-10.Tax-Gross Domestic Product (GDP] ratio increased from 4.6 per cent in 2005-06 to 6.1 per cent in 2009-10. However, there was a slight decline as compared to 6.6 per cent in 2007-08. For every unit growth in GDP, direct taxes grew from 1.7 per cent in 2005-06 to 2.6 percent in 2007-08. The buoyancy slowed down to 0.8 per cent in 2009-10 through 0.5 per cent in 2008-09. The decline in buoyancy is a matter of concern.

The assessee base grew over the last five years from 297.9 lakh taxpayers in 2005-06 to 340.9 lakh taxpayers in 2009-10 at the rate of 14.4 percent.Voluntary compliance by assessees (pre-assessment stage) accounted for 82.8 per cent of the gross collections in 2009-10. Only 65 per cent of the total demand raised in 2009-10 was collected registering a decline as compared to 74 per cent collected in 2007-08.Out of the total 8.7 lakh scrutiny assessment cases, the Department had disposed off 4.3 lakh (49.3 per cent) cases in 2009-10. The pendency of scrutiny assessments increased from 45.7 per cent in 2005-06 to 50.7 per cent in 2009-10.

The certified demand remaining uncollected was RS 95,122.4 crore(96.6 per cent) in 2009-10 as compared to RS 27,461 crore in 2008-09 registering an increase of 246.4 per cent.Total cost of direct tax collection increased to 0.73 per cent in 2009-10 mainly due to increase in establishment cost. The Government refunded RS 57,101 crore including interest of RS 12,951 crore (22.7 per cent) in 2009-10. Interestingly number of pending direct refund cases has gone up from 5.7 lakh in 2005-06 to 19.4 lakh in 2009-10.

Download Audit Report

• Report No. 26 of 2010-11 , Compliance Audit Report on Direct Taxes, Union Government
  _{(14.90 MB) Download}

• Preface
  _{(0.13 MB) Download}
• Overview
  _{(0.63 MB) Download}
• Tax Administration
  _{(2.62 MB) Download}
• Chapter 2 - Audit Impact
  _{(1.77 MB) Download}
• Corporation Tax
  _{(2.83 MB) Download}
• Income Tax, Fringe Benefit Tax, Wealth Tax
  _{(2.84 MB) Download}
• Appendices
  _{(4.91 MB) Download}