India's corporate and income tax collections for the current year are likely to fall for the first time in at least two decades amid a sharp decline in Bharta's economic growth and a cut in corporate tax rates, in addition to more than half a dozen senior tax officials, Reuters Has given this information to The same Prime Minister Narendra Modi government was targeting 13.5 trillion rupees ($ 189 billion) for direct tax collection for the year ended 31 March, 17 percent more than in the previous financial year.

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At the moment, businesses are stagnant due to sharp drop in demand, due to which companies have to cut investment and jobs, along with the tax collection has been broken, the government has to estimate the growth rate of 5 percent in this financial year. Which is the lowest in 11 years? Data from the past three years show that after collecting taxes from companies in advance for the first three quarters, officers typically increase the annual direct taxes by about 30–35 percent in the last three months.

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But eight senior tax officials interviewed by Reuters said that despite their better efforts, direct tax collection is likely to come down to 11.5 trillion collected in the financial year 2018-19. Direct tax is 80 percent of the government's estimated annual income, apart from which the government may need to borrow to meet expenses due to low income. Tax officials said corporate tax cuts by the government last year could also lead to a drop in tax collections, currently aimed at wooing manufacturers and boosting foreign investment. On the employment front too, the economy is relieved. According to the data released by the government, about 23 lakh people got jobs in the formal sector in November.

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