Direct tax collection up by 47%
August 7, 2008 – 11:47 amDirect tax collections, including corporate and personal income tax, have grown by 46.95 per cent to Rs 71,648 crore in April-July this year mainly on account of surge in TDS receipts and buoyancy in corporate profits.
“Robust growth in direct tax collections is a result of tax education and compliance mechanism put in place by the Income Tax department in the area of tax deducted at source (TDS) and tax collection at source (TCS) and indicates further improvement in tax administration and tax compliance levels,” said a Finance Ministry statement.
Growth in corporate TDS/TCS was particularly high at 60.6 per cent. Analysts said growth in tax collections, despite slow down in industrial production, will help the Government to meet the fiscal deficit targets while footing the bill of the Sixth Pay Commission recommendations.
The Finance Ministry has already revised its target of direct tax collections from Rs 3.65 lakh crore to about Rs 4 lakh crore. During the first four months of this fiscal, corporate taxes grew by 50.08 per cent and stood at Rs 41,598 crore against Rs 27,718 crore during the corresponding period last fiscal.
Meanwhile, personal income tax including FBT, security transaction tax and banking cash transaction tax grew at 42.82 per cent to Rs 29,982 crore against Rs 20,993 crore during the same period.
source:The Pioneer