Direct Tax

Various tax concessions in the form of exemptions/ deductions etc. have been provided under the Income-tax Act, 1961 which have been availed by different sectors of Commerce and Industry also. Cumulative figures of revenue impact of direct tax incentives for the last five years are as follows :

(Amount in Cr.)

Financial Year	2011-12	2012-13	2013-14	2014-15	(projected) 2015-16
Corporate Incometax	61,756	68,720	57,793	65,067	68,711
Personal Incometax	39,375	33,535	35,254	53,526	59,928
Total	1,01,131	1,02,255	93,047	1,18,593	1,28,639

 No sector wise details of industry are however maintained and section wise details of revenue impact of direct tax incentives is presented before Parliament with Budget in the form of document titled, “Statement of Revenue Impact of Tax Incentives under the Central Tax System”.

Various tax incentives in the form of exemptions/deduction/special rates of depreciation/rebates, etc are provided under the Income-tax Act,1961 to promote exports; balanced regional development; creation of infrastructure facilities; employment; donations for charity and rural development; scientific research and development; and the cooperative sector.

Indirect Tax

Customs and Central excise duty exemptions are extended to goods in general, considering inter alia the public interest. The revenue impact of tax incentives on account of exemptions / concessions from customs and excise duty for last five financial years is as under: 

(Amount in Cr.)

Financial Year	2011-12	2012-13	2013-14	2014-15	(projected) 2015-16
Customs Duty	2,36,852	2,54,039	2,60,714	2, 38, 967	2, 57, 549
Excise Duty	1,95,590	2,09,940	1,96,223	1, 96, 789	2, 24, 940
Total	4,32,442	4,63,979	4,56,937	4, 35, 756	4, 82, 489

Tax concessions are provided as a part of overall fiscal incentives provided by the government to realize macroeconomic objectives and achieve policy goals of development and growth of various sectors of economy. No such quantitative exercise for the outcome of reliefs provided to industry and commerce sectors is done.

This information was given by Minister of State for Finance Shri. Santosh  Kumar Gangwar today in written reply to a Rajya Sabha question. 

Tax incentives for industry and commerce reported with revenue impact figures while no sector wise beneficiary data or outcome assessment exists. Tax incentives under the Income-tax Act and customs/excise law provide exemptions, deductions and special rates to promote exports, regional development, infrastructure, employment, charity, research and the cooperative sector. The Press Release reports cumulative revenue-impact figures for corporate and personal income tax and for customs and excise duty over five financial years, states no sector-wise beneficiary data is maintained while section-wise impacts are presented in the Statement of Revenue Impact of Tax Incentives, and notes no quantitative outcome assessment of these reliefs has been performed.