South States Paid Income Tax of Rs.66,267 Crore in Eight Months

The Senior Chief Commissioner of Income Tax for Telangana and Andhra Pradesh, Mitali Madhusmita said, the income-tax department has collected Rs.66,267 crore in taxes in Telangana and Andhra Pradesh as of December 2 — eight months as compared to the Rs.1.21 lakh crore target in 2024-25.

Speaking to reporters on the sidelines of an interactive session titled ‘Faceless Assessment under the Vivad-Se-Vishwas Scheme’ at the Federation of Telangana Chamber of Commerce and Industry (FTCCI) in Hyderabad on Monday, Madusmita stated that the department expected a 15% increase in tax collection this fiscal year compared to last. However, the actual growth rate exceeded estimates, standing at 20%.

“As Telangana alone has achieved a growth rate of around 18 to 19% this year, the tax collection in Andhra Pradesh has not been as promising,” Madusmita told reporters. The department further stated that over Rs.2 lakh crore in tax collections were in dispute across both states.

Madusmita advised taxpayers to comply with the income tax department by responding quickly to notices requesting extra information. She emphasized the need of settling long-standing tax concerns and disputes using existing schemes.

The principal commissioner of income tax (review unit-I), Shravan Kumar Gotru, stated that, despite expectations, the reaction to the Vivad se Vishwas Scheme and the Dispute Resolution Committee (DRC) has been cold. “We anticipated receiving a large number of cases, but unfortunately, this has not happened,” Gotru said.

The Direct Tax Vivad se Vishwas Rules, 2024, are intended to provide an effective settlement to direct tax disputes, putting an end to long-running litigations. At the same time, the Faceless Assessment Scheme is intended to reduce direct human engagement in the assessment process by leveraging online technologies to improve system efficiency and accessibility.

Despite the numerous benefits that these schemes offer, V.S. Sudhir, chairman of FTCCI’s Direct Taxes Committee, stated that both taxpayers and tax administrators face obstacles. “Efforts are underway to promote better understanding and cooperation between the two parties, ensuring a win-win situation for everyone involved,” he added.

Sudhir also emphasized taxes’ dual role in driving the country’s government while keeping the administration taxpayer-friendly, allowing for simpler compliance.