First quarter advance tax collections often do not square up with GDP growth rate. However, the numbers become more realistic as the years progress. In FY14, despite showing high Q1 advance tax, fiscal deficit went out of shape.
For finance minister Arun Jaitley, the challenge is to get an accurate collection figure from his Income Tax department. (Image Credit: PTI)
Though in the Interim Budget, the UPA-II government provided indirect tax sops to industry by reducing excise duty for small cars, scooters and SUVs to boost the sagging auto sector, it refrained from making any changes in the direct taxes on the grounds that it is the prerogative of the new government. (Image Credit: Reuters)
As taxpayers eagerly await the full Budget 2014-15 for some relief to battle the rising prices, the government has already indicated that tough decisions are in the offing.