The Hindu Business Line : 41% rise in net direct tax collections

New Delhi, Feb. 20 The Centre’s direct tax revenues continued to be buoyant, with collections during the period April 1, 2007 to February 15, 2008 recording 41.4 per cent increase to Rs 2,28,745 crore. This collection level constituted 85 per cent of the budgeted direct tax target of Rs 2,67,490 crore for 2007-08.

The strong growth in direct tax collections so far in the current fiscal has raised hope among taxpayers that the Finance Minister, Mr P Chidambaram, would moderate direct tax rates in the forthcoming budget.

While corporate tax collections grew 38.78 per cent for the period under review at Rs 1,38,073 crore, up from Rs 99,488 crore in the same period during the previous fiscal, personal income tax (including FBT, STT and BCTT) grew by 45.64 per cent at Rs 90,356 crore, up from Rs 62,040 crore.

An official statement said that securities transaction tax (STT) collections recorded 84.64 per cent growth to Rs 7,878 crore (Rs 4,267 crore). Fringe benefit tax (FBT) collections were up 29.75 per cent to Rs 5,216 crore (Rs 4,020 crore). Banking cash transaction tax (BCTT) collections grew 16.81 per cent to Rs 478 crore (Rs 409 crore)

Highest growth

Mumbai region recorded the highest overall growth at Rs 83,363 crore compared to Rs.50,227 crore in the same period last fiscal (i.e. 65.97 per cent) and its contribution to the direct tax collections in the country so far is 36.86 percent.

Among the type of taxes, self-assessment tax (paid voluntarily before filing of tax return) recorded a growth of 62.9 percent while tax deducted /collected at source recorded a growth of 51.9 per cent, indicating improved tax administration and better tax compliance levels.

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