The Centre’s net direct tax collections increased 16.32 per cent to Rs 2,26,603 crore during the first six months (April-September) of the current financial year, compared with Rs 1,94,812 crore during the same period in 2011-12.
This is 39.7 per cent of the Budget estimate of Rs 5,70,257 crore for the current financial year. The Vijay Kelkar Panel in its report on fiscal consolidation recently had said the overall tax collections (both direct and indirect) may fall short of the Budget target by about Rs 60,000 crore. However, Finance Minister P Chidambaram on Monday said the Kelkar Panel had presented the worst case scenario and the revenue department was told “target must be met”.
Last fiscal as well, the net direct tax collections were roughly 40 per cent of the budget estimates in the first six months and the actual realisation fell short of Rs 30,000 crore. Gross direct tax collection during the six-month period increased 5.87 per cent at Rs 2,72,133 crore, against Rs 2,57,042 crore in the same period last year, the finance ministry said in a statement.
While gross collection of corporate taxes showed an uptick of 1.6 per cent at Rs 1,78,173 crore against Rs 1,75,360 crore last year, gross collection of personal income tax was up by 14.87 per cent at Rs 93,451 crore, compared with Rs 81,353 crore in the same period a year ago.
Growth in wealth tax was 53.9 per cent at Rs 474 crore, against Rs 308 crore last year, while collections from securities transaction tax slipped 17.03 per cent to Rs 2,076 crore, against Rs 2,502 crore in the same period last year.
According to Chidambaram, collections will improve in the second half (October-March) of the financial year.