CA Sandeep Kanoi

In the period from Financial year 2006-2007 to Financial Year 2011-12, Total Income Tax Returns filed by Corporate Taxpayers was 25.55 Lakh against the Required 46.24 Lakh Returns.  During the period in financial year 2006-07, 56.19% of Corporate Assessees has not filed Income tax Return required to be filed by them, while in Financial Year 2011-12 the Percentage has come down to 26.97%. On Average during the the period from Financial year 2006-2007 to Financial Year 2011-12 44.74% Corporate Taxpayers has not filed their Income tax Returns.

There were 7.2 lakh working companies registered with the Registrar of Companies (ROC) as on March 31, 2011 and 8.01 lakh on March 31, 2012. However, the number of corporate taxpayers, according to the Income Tax Department’s records, was 3.76 lakh and 5.85 lakh, respectively, in the two years, leaving an unreconciled number of 3.44 lakh and 2.16 lakh companies respectively, even though all of them are legally required to file returns mandatorily. It is most important, therefore, for the department to pursue this lead to identify companies that are registered but have not filed returns.

(In lakh)

Category of Taxpayers
(Income/Loss)
No. of Corporate Taxpayers
Year FY 07 FY 08 FY 09 FY 10 FY 11 FY 12
Below Rs. 50,000 2.05 3.16 1.67 1.84 1.69 2.95
Rs. 50,000 to Rs. 5 lakh 0.78 0.7 0.59 0.65 0.76 0.91
Rs. 5 lakh to Rs. 10 lakh 0.47 0.51 0.48 0.61 0.67 0.96
Rs.10 lakh and above 0.68 0.59 0.51 0.56 0.62 1
Search and Seizure assessments 0.02 0.02 0.03 0.02 0.02 0.03
Grand Total 4 4.98 3.28 3.68 3.76 5.85

Source: CAG Report No. 15 of 201 3(Direct Taxes)

Gap in corporate taxpayers

(In lakh)

Year Total
corporate
taxpayers
Number of
working
companies
as per
RoC as on
31st
March
Gap
in no. of
corporate
taxpayers
% of Corporate Non-Filers of Income Tax Return
2006-07 4 7.44 3.44 46.24%
2007- 08 4.98 7.69 2.71 35.24%
2008-09 3.28 7.5 4.22 56.27%
2009-10 3.68 8.4 4.72 56.19%
2010-11 3.76 7.2 3.44 47.78%
2011-12 5.85 8.01 2.16 26.97%
Total 25.55 46.24 20.69 44.74% (Average of Last 6 Years)

Source: CAG Report No. 15 of 2013 (Direct Taxes).

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