Income Tax Department faces financial crisis as per the sources

Income Tax department’s officers has now made preparation to raise the issue in the meeting to be held in Lucknow on Feb 20 for the lack of funds available to them for utilisation. The Income Tax Department one of the departments that play an effective role in filling the treasury of the Central Government and arranging funds to fulfill the announcements made in the Union Budget, has been suffering from a financial crisis for the last several months.

Direct Tax collection, net of refunds, stands at Rs. 14.70 lakh crore which is 19.41% higher than the net collections for the corresponding period of last year. Rating agency ICRA said it expects the full year’s direct tax collections to exceed Budget estimates by ₹1 lakh crore, with a growth of around 18% over the provisional numbers for 2022-23.

The situation is that the Income Tax officers working in the field across the country do not have sufficient budget for government works and due to lack of budget funds, these officers are turning a blind eye to those demanding payment for the services rendered.

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In the Uttar Pradesh state too, due to lack of budget, the credibility of the Income Tax Department has been tarnished and it is said that even the connections of two Income Tax offices in Rajasthan have been disconnected due to non-payment of electricity bills. Local officials rushed to put it back in place and saved the department’s reputation.

According to information received from reliable sources, a fixed budget is allocated for every expenditure in the IT Department. The expenses and dues paid are grossly inadequate compared to what is required.