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Net direct tax collections in April-September increased just 7.09 per cent against a Budget target of 15.31 per cent for 2014-15, as income tax refunds shot up 54.51 per cent during the period. This is despite the fact that the second instalment of advance tax payments has come to the kitty.
Tax collections, net of refunds, stood at Rs 2,68,836 crore in the first six months of the current financial year (FY15), compared to Rs 2,51,028 crore during the same period in 2013-14, the Central Board of Direct Taxes (CBDT) said in a press statement issued on Tuesday.
Refunds during the six-month period this year rose to Rs 77,308 crore from Rs 50,035 crore in the year-ago period. Higher refunds in the first half of the year are not unusual as tax officers, under pressure to meet target, persuade taxpayers to pay more in the last quarter.
Direct tax collections, inclusive of refunds, in April-September 2014 were up 15 per cent and stood at Rs 3,46,144 crore, against Rs 3,01,063 crore collected during the same period last year.
“Gross collections of corporation tax has shown an increase of 15.31 per cent and stood at Rs 2,22,616 crore against Rs 1,93,054 crore collected during the same period last year,” the CBDT said.
Gross collection of personal income tax, including securities transaction tax and wealth tax, was up by 14.37 per cent and stood at Rs 1,23,528 crore, against Rs 1,08,009 crore collected in the corresponding period of 2013-14.
Advance tax collections posted a growth of 15.28 per cent during the first half of the year, against a 7.66 per cent growth in the year-ago period, signalling corporations may report higher net profit growth for the period.
Growth in tax deduction at source during April-September this year was 9.47 per cent, lower than the increase of 14.22 recorded in the same period last year.
The government has projected its net direct tax collections for 2014-15 at Rs 7,36,221 crore - an increase of 15.31 per cent over last year’s collections of Rs 6,38,495 crore. Despite a slower growth in the first six months, the target looks achievable considering a growth of 14.29 per cent was posted last year as well. It should be higher this year as the economy is projected to grow 5.9 per cent.
