Direct tax collections go up

M. Raghuram

BANGALORE: Direct tax collections in the first seven months of the present fiscal year (up to October 2008) have reached Rs. 1,66,905 crore, up from Rs. 1,28,864 crore in the corresponding period last year, a growth of 29.52 per cent.

According to sources in the Central Board of Direct Taxes (CBDT), there been a 33.49 per cent surge in corporate tax from Rs. 78,785 crore to Rs. 1,05,174 crore, while personal income tax (including taxes on fringe benefits and securities transactions) grew by 23.14 per cent from Rs. 49,890 crore to Rs. 61,433 crore

Shift in focus

The sources said that the momentum of growth could be maintained despite the present global financial crisis and recession and its impact on the Indian economy. The CBDT had shifted its tax collection strategy towards improving the tax deduction at source (TDS) mechanism and encouraging better tax compliance.

As a result, TDS has grown by 35.78 per cent and self-assessment tax by 52.76 per cent. Corporate TDS has also shown a growth of 48.2 per cent by mopping up Rs. 36,004 crore as against Rs. 24,293 crore in the corresponding period in the last fiscal year.

The sources said other indicators such as growth in corporate TDS by over 48 per cent, growth in fringe benefit tax by over 47 per cent and growth in dividend distribution tax by over 48 per cent indicated the strength of the Indian economy. The 1.60 per cent fall in securities transaction tax collections was reflective of the huge erosion in the value of stock market transactions.

Advance tax

Despite lower advance tax payments by certain sectors such as real estate, infrastructure, cement, automobile, power, textile and oil companies, advance taxes recorded a growth in mining, mineral, metal, engineering, banking, telecom, information technology, pharmaceutical and consumer goods sectors, the sources added.

Recommended for you