BIMARU States Defeated Metropolises in PIT

According to latest Income Tax (I-T) data, economic powerhouses Mumbai, Delhi, Hyderabad, Chennai and Kolkata have lost out to Patna, Lucknow, Meerut, Chandigarh, Kanpur and Kochi in net personal I-T (PIT) mop-up. This essentially means that the deemed BIMARU towns are fostering economic resurgence. Madhya Pradesh, Chhattisgarh, Bihar, Jharkhand, Maharastra’s Vidarbha, Orissa, Kanpur and Chandigarh have all shown maximum growth in corporate I-T collection — between 25% and more than 200% — during this period as compared to Mumbai (2%), Bangalore (6%), Chennai (10%) and Kolkata (27%), Hyderabad (31%) and Delhi (73%). Apart from Bangalore none of the metros figure in the top 10 cities that have posted highest growth in personal IT collection during the April-July 2010 period as compared to the same period in 2009. The highest growth among all regions was posted by Bihar and Jharkhand followed by Purvanchal or eastern Uttar Pradesh, where collection shows an increase of 91%. Meerut, or western UP region (51%), is third on the list, followed by Bangalore (50%); Chandigarh (41%); Kanpur (40%); Guwahati (23%); Pune and Kochi (22%) and Nagpur (18%). As compared against this the growth of PIT in megapolises like Delhi and Mumbai was 4% and 6%, respectively. The growth in personal income resulted from the robust corporate performance in these regions, which is also reflected in the corporate I-T collection.

Devolution of financial and manpower recruitment to regional heads is being considered n the wake of the growing personal income of these regions. Presently there are 900 range offices headed by an additional commissioner/joint commissioner rank officers. On an average, each range collects revenue to the tune of Rs 500 crore. Wide spread growth of tax-base across the country and mushrooming of commercial centres in different regions raised the need for range heads to have more financial powers in hiring additional manpower or taking independent decision on expenditure in order to facilitate compliance and revenue generation.