The changing economic landscape of India is showing up in the region-wise break-up of income tax collections. Mumbai, the business capital of the country, still contributes the largest, 29%, of total income tax revenues, but its share has been falling. Delhi, the second-largest contributor to the tax kitty, saw collections rising 45% from April to November 13 this year over the same period in 2017.
Collections in Mumbai rose only 5%. Slower growth in Mumbai is attributed to hefty refunds. The massive growth in Delhi has helped the region increase its share in total collections to 16.5%, a jump of over five percentage points compared to a year ago.
The region’s growth was much higher than even smaller centres like Chennai and Kolkata which recorded single-digit growth rates during these seven and a half months. “The department has been proactive in paying refunds across the country. But the number should be seen in the context of refunds paid out in Mumbai, which have been quite high,” said an official, without revealing any details.