October 2006 News

J&K allocated Rs 719 cr from Union Direct Taxes Pool

10 October 2006
The Daily Excelsior
By Mohinder Verma

Jammu: Jammu and Kashmir has received three times the amount it has contributed as Income Tax, Corporation Tax and Wealth Tax in the net proceeds of Union Direct Taxes for the development purpose. All these taxes are being realised by the Income Tax Department. While Corporation Tax is realized from the corporate houses, Income Tax is being paid by non-corporate establishments like firms, traders and individuals. In Wealth Tax category, every citizen of the State falls. In the financial year ending March 31, 2006, Income Tax Department collected Rs 257 crore as Corporation Tax, Income Tax and Wealth Tax from the entire State, an official data available with the EXCELSIOR revealed. As against the total contribution of Rs 257 crore under three heads of Income Tax, Corporation Tax and Wealth Tax in the net proceeds of the Union Direct Taxes, Jammu and Kashmir received Rs 719 crore from the Central Government under pool of the Union Direct Taxes. Of Rs 719 crore, Rs 438.24 crore has been received under Corporation Tax, Rs 280.14 crore under Income Tax and Rs 60 lakh under Wealth Tax head, the official data indicated. As compared to the financial year of 2004-05 when J&K contributed Rs 187 crore as Income Tax, Corporation Tax and Wealth Tax in the net proceeds of the Union Direct Taxes, in financial year 2005-06 the State has increased its contribution by Rs 70 crore. Against the contribution of additional Rs 70 crore, J&K received Rs 106 crore more amount from the Central Government during the current financial year as compared to the previous year when it received Rs 613 crore under the heads of Corporation Tax, Income Tax and Wealth Tax. The data is a clear indication that evasion of any sort of tax would not help the State and its people in any way. Rather by disclosing their exact income and paying taxes accordingly, the people of the State can contribute in its development which is ultimately for them only. Sources in Income Tax Department said that despite generating such a huge resources for the State, the Department was not getting expected cooperation from the State Government Departments. When contacted, Income Tax Commissioner Virendra Singh said 'we expect better cooperation from the Departments of the State Government so that evasion of taxes could be detected'. The IT Department has started awareness campaign in every nook and corner of the State not only to apprise the traders and Government officials about the amendments in the Income Tax Act but also apprise them that by paying taxes they are not losing but gaining in the shape of development of the State, he disclosed. More contribution means more allocation of funds by the Central Government under the pool of Union Direct Taxes, the IT Commissioner said.

 

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