Direct tax collection up 33 percent to Rs.1.47 trillionOctober 6th, 2008 - 8:01 pm ICT by IANS
New Delhi, Oct 6 (IANS) Faced with a sluggish economy, Indian policy-makers Monday received some solace, with net direct tax collection up nearly 33 percent to Rs.147,197 crore or Rs.1.47 trillion in the first six months of the current fiscal.The finance ministry said the net direct tax collection during April-September this fiscal stood at Rs.147,197 crore, up from Rs.111,055 crore, registering a growth of 32.54 percent.
“Continued high growth in TDS (tax deduction at source) and FBT (fringe benefit tax) collections indicates inherent strength of the Indian economy and continued improvement in tax administration,” said the ministry in a statement.
The Indian economy, the third largest in Asia after China and Japan, registered 7.9 percent growth in gross domestic product (GDP) during the first quarter of current fiscal against 9.2 percent in the last corresponding period.
The ministry said the growth in corporate taxes was 35.65 percent, with collection going up to Rs.95,283 crore or Rs.950.28 billion, as against Rs.70,240 crore or Rs.702.4 billion.
Personal income tax collection, which includes fringe benefit tax (FBT), security transaction tax (STT) and banking cash transaction tax (BCTT), went up to Rs.51,701 crore or Rs. 517 billion from Rs.40,729 crore or Rs.407.29 billion, registering a growth of 26.94 percent.
FBT grew 62.23 percent (Rs.3,580 crore or Rs.35.8 billion, against Rs.2,207 crore or 22.07 billion), STT was 2.72 percent (Rs.3,182 crore or Rs.31.8 billion against Rs.3,098 crore or Rs.30.98 billion), BCTT was 17.65 percent (Rs.320 crore or Rs.3.2 billion against Rs.272 crore or Rs.2.72 billion) during first six months of the current year.
The growth in corporate tax deducted at source (TDS) remained above 52 percent, and personal income tax (PIT) TDS grew at 28 percent despite substantial tax relief allowed to individual taxpayers in the Union Budget 2008.
“The corporate TDS collections stood at Rs.30,810 crore (Rs.308.1 billion) as of Sep 30 this year against Rs.20,210 crore (Rs.202.1 billion) during the last corresponding period,” the ministry said, adding that TDS stood at Rs.33,276 crore (Rs.332.76 billion) as against Rs.26,002 crore (Rs.260 billion) in the same period.
The self-assessment tax paid by both corporate and non-corporate taxpayers, voluntarily before filing their tax returns, registered substantial growth at 111 percent and 71 percent respectively, said the finance ministry.