As Covid-19 and political uncertainty continue to engulf Jammu and Kashmir, income tax collection in the region has seen a dip in the financial year 2020-21 compared to previous years.
During 2020-2021, the Income Tax department collected Rs 1,110 crore from Jammu and Kashmir which was over Rs 450 crore less than 2018-19 when Rs 1,563 crore was collected. Based on data by the Central Board of Direct Taxes, in comparison to the previous year, the tax collection in J&K has shown a slight dip which officials attribute to the economic meltdown post-Covid-19.
According to official figures, in 2017-18, Rs 1,302.6 crore was collected as income tax from J&K while in 2016-2017, the amount was Rs 1,091.08 crore. The dip in income tax collection during 2016-2017 was due to prolonged summer unrest in Kashmir following militant commander Burhan Wani’s killing and subsequent street protests for four months.
In 2013-14, income tax collection in J&K was Rs 1,459 crore which came down to Rs 1,284 in the next financial year. The reason for the decline, according to the officials, was devastating floods which hit the Kashmir region in September 2014. In 2015-16, the tax collection again went up with Rs 1,383.96 crore collected.
Principal Commissioner of Income Tax (PCIT) Srinagar, MP Singh advised people of J&K to pay their taxes diligently and come under the tax ambit without any fear.
“Economic development without financial discipline cannot bring self-respect among people. The first step towards financial discipline is to pay their due taxes and file their ITRs which is a very essential process,” he said.
He reiterated that there is no scope of any bias or harassment anymore under the new transparent and accountable tax regime.
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