Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Income tax collections-how it is spent by cent govt

SIVASIVA (FCA, Future CA) (4935 Points)

09 August 2013

dear friends,

please share how IT collections are spent by the Govt

Reply
Follow
Share

12 Replies

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 09 August 2013

Also, to know about Indirect tax collection,

Excise duty,

Customs duty

Service Tax

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Mihir (Wealth Manager) (5293 Points)
Replied 09 August 2013

Govt only shares the income tax collection for a specific year, but it all gets mixed into consolidated fund from which allocation of funds are made as per government budget. Income flow is taxes collected, and outflow is funds allocated to various sectors like infrastructure, agriculture, defense, healthcare, subsidies etc.

1 Like

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 09 August 2013

Hi mihir...

Apart from Tax Collection, do government gets any amount of Inflow substantially apart from Dividents from PSUs...

I don't this so..

Tax is the only Inflow of Cash..

2 Like

SELWYN SOLOMON (ACCOUNT EXECUTIVE) (85 Points)
Replied 09 August 2013

Government wont reveal how it is spent...

If they reveal, then they cannot run their Political Business..

I think, Right to information act, should empower that..

Mihir (Wealth Manager) (5293 Points)
Replied 09 August 2013

Apart from income tax, there is corporate tax also which is quite large especially after so many foreign companies/banks have come in here to invest. Separate fees/taxes have been put in place to make a particular govt activity function financially independent to some extent. There is court fees, stamp duty, bonds, penality, and many more. The problem is not inflow, but the outflow because too much money is poorly managed and therefore the benefits is always short, thanks to corruption.

I think our country is extremely rich in natural resources as well as human resources, but the application of these resources has been eternally poor. Probably this is the destiny of India; always ruled by someone who would exploit/misuse these resources for personal selfish gain. First there was mughals, then british and now congress.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 09 August 2013

the following are the revenues for the government

Income tax,sales tax(VAT and CST),Excise duty,wealth tax,customs duties and interest and penalties relating to afore said and Loans include both external debt i.e loans and grants from foriegn institutions and foriegn governments and internal debt i.e Loans and advances with in the country and raising of money through issue of treasury bills and shares of Public sector units and other non tax revenues

1 Like

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 09 August 2013

fine... However, i think VAT is only a state's subject right?...

2 Like

Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 10 August 2013

Yes,we have both consolidated fund of india and consolidated fund of state.so VAT will be credited to Consolidated fund of state

1 Like

SELWYN SOLOMON (ACCOUNT EXECUTIVE) (85 Points)
Replied 10 August 2013

Yes... But what is the status of that CONSOLIDATED FUND....

who will report that?

Who is responsible?

Fin Ministry?

Murali PCKG (articled trainee) (136 Points)
Replied 10 August 2013

PM only maintains it.. or else CAT takes the ownership...

Upgrade to CAclubindia Pro. Subscribe Now!

Mihir (Wealth Manager) (5293 Points)
Replied 10 August 2013

https://www.finmin.nic.in/

Visit the above website to get info.

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 11 August 2013

I think.... Finance Ministry will have these funds for some time..

Later, through Budget, i.e. on 28th February every year... it will be allocated to various ministries... and those respective ministries will spend accordingly..

So, the Ministry to whom certain amount of funds are allocated is responsible to report and utilisation.

so, first Finance ministry will eat, then other ministries will join the party and eat their share...

FINALLY, PEOPLE HAS TO SIMPLY KEEP QUITE..

1 Like