Corporate tax deposits dip in March, but year’s total growth high
Corporate tax collections dipped by nearly 5 per cent in March 2009 — the month in which the final installment of tax dues are paid — as the ongoing economic slowdown seems to have affected India Inc’s profits.
It declined to Rs 51,206 crore in March 2009, as compared to Rs 53,670 crore in the corresponding month last year.
However, personal income tax collections - which include fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT) - grew by nearly 9 per cent, to Rs 28,037 crore in March 2009.
| DIRECT TAX COLLECTIONS | |||
| March 2008 | March 2009 | % growth | |
| Total direct tax collections | 79,526 | 79,310 | -0.27 |
| Corporate taxes | 53,670 | 51,206 | -4.59 |
| Personal income tax | 25,793 | 28,037 | 8.70 |
| Source: CBDT | |||
Overall direct tax receipts in March declined by 0.3 per cent to Rs 79,310 crore, as compared to Rs 79,526 crore in March 2008.
On a year-on-year basis, direct tax collections fell short of the revised target for fiscal 2008-09 by Rs 6,000 crore. But compared to last year (2007-08), it grew by 8.33 per cent, to Rs 3,38,212 crore.
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In case of corporate taxes, while there was a growth of over 10 per cent at Rs 2,13,823 crore this fiscal as against Rs 1,92,911 crore in 2007-08, it fell short of the revised estimates of Rs 2,22,000 crore.
Personal income tax (PIT) registered a growth of almost 10 per cent at Rs123,967 crore as against Rs 118,904 crore in 2007-08. Growth in FBT was 12.38 per cent at Rs 7,997 cr, as against Rs 7,116 crore in 2007-08. But STT dipped by almost 37 per cent at Rs 5,408 crore this year as against Rs 8,577 cr last year, said the official release.
Of total tax demands raised by the IT department, Rs 31,242 crore were collected, which included tax arrears of Rs.10,016 crore and current tax of Rs 21,226 crore.
The economic slowdown and relief provided to non-corporate tax payers failed to dampen direct tax collections this year, which exceeded the previous year’s collection by about Rs 26,000 crore.
Corporate tax deducted at source (TDS) registered a growth of 35.4 per cent at Rs 61,683 crore against Rs 45,450 crore last year. The TDS for personal income taxes registered a growth of 16.3 per cent at Rs 68,786 crore, against Rs 59,145 crore last year. And central government TDS registered a growth of 65.39 per cent at Rs 3,364 crore against Rs 2,034 crore last year.
Direct tax as a percentage of GDP is estimated at 6.23 percent, declining from 6.61 per cent achieved during 2007-08. The cost of collection increased to 0.66 percent during 2008-09 from 0.54 percent during 2007-08, a finance ministry press release said.