As money trickles, Bihar jumps to second spot in I-T growth rate

GROWTH RATE HAS BEEN 26.9 AS COMPARED 19.8% LAST FISCAL
TDS CONTRIBUTED AROUND 30 % OF THE TOTAL COLLECTIONS

June 11, 2011, Patna: Bihar has grabbed the second position in the country in terms of percentage growth rate in income-tax collection. In the financial year 2010-2011, the growth rate has been 26.9%. It has been a commendable feat as compared to last fiscal when Bihar stood fifth with 19.8% growth rate.

As per the figures made available by the department, net I-T collection of Bihar and Jharkhand region during the financial year 2010-11 stood at Rs 4,263 crores against the budget target of Rs 4,079 crore. During the previous year (2009-10), the collection was Rs 3,358 crores against the target of Rs 3,170 crores. Thus, the tax collection shows a 27% growth against the last year's 19.8%.

A unique feature about Bihar's income-tax collection is that the contribution of tax deduction at source (TDS) has been remarkable. While TDS contributes 30% of the total tax collection in the country, its contribution is as high as 70% in Bihar. This represents a growth of 43% in 2010-11 against 24% growth rate in 2009-10 as per the statistics available with the I-T department.

As against the budget's target of TDS collection of Rs 2,553 crore in the year 2010-2011 for the region, the actual receipt has been Rs 3,046 crore. The percentage increase with reference to the target was 19.33% as compared to last year's 8.84% only.