Net direct tax collections grew by 3.69 per cent during the first six months of the current financial year on a year on year basis to stand at Rs 152,625 crore. They stood at Rs 147,197 crore during the April-September 2008 period. The growth in direct taxes is primarily guided by a 5.5 per cent rise in corporate tax collections, reflecting an increase in corporate income.
The direct tax collection so far accounts for 38.2 per cent of the revised target of Rs 400,000 crore set by the government for this financial year and 41 per cent of the original Budgetary target of Rs 370,000 crore. Finance Minister Pranab Mukherjee had in August revised the target upwards. Officials are confident that the new target will be met, considering that the fourth quarter sees a surge in tax collection.
| GROWING PAINS (First-half direct tax collections) | |||
| 2008 (Rs cr) | 2009 (Rs cr) | Growth (per cent) | |
| Corporate tax | 95,283 | 100,572 | 5.55 |
| Personal income tax | 51,700 | 51,897 | 0.38 |
| Total | 147,197 | 152,625 | 3.69 |
| Full-year target revised to Rs 400,000 crore from Rs 370,000 crore. 38 per cent of the revised target and 41 per cent of the budget target has been met so far | |||
Corporate tax collection grew by 5.55 per cent to Rs 1,00,572 crore, while personal income tax grew at 0.38 per cent to Rs 51,897 crore in the April-September 2009 period. During the second quarter (July-September) of this financial year, corporate tax collection grew by 6.39 per cent to Rs 64,863 crore, against the same period in 2008. It had grown by only 3.31 per cent in the first quarter. However, personal tax collection declined marginally by 2.77 per cent to Rs 28,117 crore during the second quarter, against the corresponding period in 2008.
The Central Board of Direct Taxes (CBDT) said in a press release that lower growth in net collections was mainly on account of higher tax refund outgo of 51.1 per cent at Rs 28,281 crore, against Rs 18,717 crore in the previous financial year.
Net direct tax collections during the first three months of the present year, at Rs.59,465 crore, rose 3.65 per cent from Rs 57,373 crore in the same period last year. Growth in corporate taxes was 3.31 per cent at Rs 35,709 crore, while personal income taxt, including FBT and STT, grew 4.38 per cent at Rs 23,780 crore.
Net collections in September grew by 3.1 per cent to stand at Rs 64,737 crore, as against Rs 62,788 crore in the corresponding period last year.
After receipt of the instalments up to the second quarter ended September 2009, advance tax collections stand at a net growth of 2.15 per cent, up from a fall of 6.17 per cent in the first quarter ended June 2009, against the corresponding periods in 2008. In the second quarter, the net growth in advance tax was 6.21 per cent. Corporate advance tax registered a significant growth of 12.24 per cent during the second quarter, up from a decline of 3.44 per cent in the first quarter.
