Q1 direct tax growth rebuts slowdown fears

Net41,391(47.5) 2008-09 Gross68,951(41.6) Refunds11,578(58.5) Net57,373(38.61) Figures in Rs crore unless indicated
(Figures in brackets = y-o-y growth rates)
Source: Income tax department  "Overall direct tax collection growth looks good, despite higher inflation and high oil prices. However, it also hides some sectoral imbalances in collections from cement and real estate," said a leading tax consultant.  "Direct tax collection growth indicates that the economy is not in a very bad state," said an income tax department official.  "There could be some moderation in growth in advance tax payments going forward due to some decline in industrial output. But, overall tax collection growth may not be impacted much," the official added.  Net direct tax collection needs to grow 25 per cent to achieve the income tax department's internal target of Rs 3,95,000 crore in 2008-09 from Rs 3,14,000 crore in 2007-08.  In addition, the cost of direct tax collections dropped to an all-time low of 0.54 per cent in 2007-08, amongst the lowest in the world, officials claimed.