Gujarat's tax collection for 2004-05 was Rs.49 billion ($1 billion) - 32.04 percent higher than the previous year - showing a growth of 46.96 percent in corporate tax and 20.65 percent in income tax (IT).

"After almost a decade, we have been able to achieve the target set for Gujarat," chief commissioner of income tax (Ahmedabad) U.P. Singh told reporters Wednesday.

Gujarat boasts of 3.4 million PAN (permanent account number) holders, which is about 7.5 percent of the national figure, and about the same share in the returns filed in the country.

However, when it comes to tax collection, the state contributes only three to 3.5 percent of the national figures, ranking usually at seventh or eighth position among all states.

"When we mention this, the chambers (of commerce and industry) tell us that it is because we are experts in tax planning," Singh said.

The financial year 2004-05, however, was "great" for the IT department in the state.

"The achievement is thanks to communication. We communicated with officers, I went to all major centres in the state. We also talked with tax planners, chartered accountants and taxpayers.

"We tell the people that we are not here to collect taxes, we are here to call upon you to contribute to the raising of resources for the country," Singh said.

During 2004-05, the total number of returns filed from the state increased by 6.04 percent from 2,000,283 to 2,121,290. The returns showing income above Rs.1 million rose by 25.9 percent from 6,385 to 8,040.

Search-and-seizures or "raids" led to admission of concealment to the tune of Rs.756.3 million, up by 42.91 percent from the earlier year.

The IT department had announced plans to set up "help centres" across the country for the benefit of common tax payers, aiming to clarify their doubts.

"We plan to set up help centres in major cities of the state this year. We are scouting for NGOs to come forward for setting them up, because such centres are to be set up out of IT offices. People prefer to avoid coming to IT offices," Singh said.