Mining ban in State, Goa bores Rs 3,000-crore hole in I-T kitty

Helpline to be launched on Jan 4

The Income Tax (I-T) department is likely to suffer a shortfall of about Rs 3,000 crore in tax collection during the current financial year due to the ban the Supreme Court has imposed on iron ore mining in Karnataka and Goa.

Disclosing this to the media here on Monday, Chief Commissioner of I-T (Karnataka and Goa) K Satyanarayana said the tax collection from the mining sector used to be around 14 per cent. But, it has come down to two per cent to three per cent following the ban. The ban on mining has also resulted in slow growth of tax generation in the Karnataka-Goa region, which is eight per cent compared to the all India average of 14 per cent.

Against the tax collection target of Rs 53,000 crore for the current fiscal, the department has so far collected Rs 32,830 crore. The department had collected Rs 30,328 crore in the same period last year.

Director General of I-T (Investigations) S Ravi said the department is in the process of assessing the total loss due to illegal mining in Karnataka.

“It is a huge probe involving many investigating agencies such as the CBI. The I-T department is still conducting the assessment proceedings,” he stated.

Satyanarayana said the Department has noticed that a large number of organisations, particularly government departments, have not remitted to the I-T department the tax-deducted-at-source (TDS) amount.

"This is a serious lapse. We urge all the departments and companies to remit the TDS amount,” he added.

He also said that big corporates were shying away from paying advance tax on their income citing liquidity problems and added that the department was in touch with these firms in this regard. The department is launching a helpline to address the grievances of the public with regard to I-T on January 4.

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