BUSINESS

Direct tax collections up 39 % in first quarter

Special Correspondent



Corporate taxes fetch Rs. 34,566 crore

Refund

pay-outs total

Rs. 11,578 crore



NEW DELHI: Contrary to apprehensions of an economic slowdown in the wake of soaring crude oil prices, direct tax collections increased by 38.61 per cent to Rs. 57,373 crore in the first quarter this fiscal as compared to Rs. 41,391 crore mopped up during the same period a year ago.

According to a Finance Ministry statement here on Friday, revenue collections through corporate taxes grew by 32.65 per cent to Rs. 34,566 crore during April-June this fiscal from Rs. 26,058 crore in the same three-month period of 2007-08. The mop-up by way of personal income tax, including fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT), was 48.84 per cent higher at Rs. 22,782 crore during the quarter when compared with Rs. 15,306 crore garnered in the like period a year ago. In particular, while FBT collections went up by 38.74 per cent, STT and BCTT were higher by 22.11 per cent and 21.03 per cent, respectively.

“The growth in direct taxes has been maintained despite much larger refund pay-outs at Rs. 11,578 crore against Rs. 7,302 crore during the corresponding period last fiscal,” the statement said.

The statement revealed that while the growth in direct tax collections in Mumbai was 40.19 per cent and Delhi 53.57 per cent, the other regions witnessing high tax growth were Nagpur (74.08 per cent), Kochi (68.08 per cent), Bangalore (47.26 per cent) and Kolkata (45.30 per cent).

Alongside, there was continued improvement in tax compliance and administration, which could be seen from the 50 per cent growth in tax deducted/collected at source (TDS/TCS) while self-assessment tax grew by 35 per cent. The statement also noted that the cost of direct tax collection had declined to an all-time low of 0.54 per cent during 2007-08 which was among the lowest in the world.

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