The Hindu Business Line : Direct tax collections up 4% in August

New Delhi, Sept 4 The Centre’s net direct tax collections in August 2008 stood at Rs 12,761 crore, marginally higher than the Rs 12,274 crore collected in the same month last year, showing a growth of about four per cent.

Considering the rationalisation in income slabs and hike in exemption limits for ‘individual’ category taxpayers announced in Budget 2008-09, the Centre’s direct tax revenues in the first five months of the current fiscal, however, showed buoyancy at a hefty growth of about 38 per cent. Official data released by the Central Board of Direct Taxes (CBDT) showed net collections during April-August 2008 at Rs 84,409 crore, up 38.31 per cent from Rs 61,030 crore in the same period last year.

Revenues

The direct tax revenues have been boosted by tax deduction at source (TDS) collections of Rs 54,860 crores, accounting for 52.9 per cent of the total collections (gross), a CBDT official said. This was higher than the TDS collection level of Rs 39,051 crore in April-August 2007, accounting for 49.6 per cent of total collections (gross).

TDS

“The percentage share of TDS in total collections is expected to come down in September on account of the advance tax payments for September instalment. This is the trend that we see every year. In September, there will be advance tax payment from both corporates and individuals”, the official noted.

While overall growth in TDS has been more than 40 per cent for the period under review, the growth in corporate TDS was particularly significant at 55.2 per cent to touch Rs 26,445 crore as on August 31, 2008 as against Rs 17,037 crore during the corresponding period last year.

For the April-August 31 period this year, corporate tax collections grew 43.49 per cent at Rs 48,450 crore (Rs 33,766 crore). Personal income tax (including fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT) grew 31.79 per cent to Rs 35.840 crore (Rs 27,195 crore).

Regions

Among regions, tax growth in Delhi and Mumbai was 76.23 per cent and 32.49 per cent respectively. Other regions with high tax growth are Nagpur (88.75 per cent), Kochi (58.07 per cent), Kolkata (56.82 per cent), Bhubaneshwar (53.59 per cent) and Bangalore (48.87 per cent)

The cost of direct tax collection, on the other hand, which had declined to an all-time low of 0.54 per cent during fiscal 2007-08, is likely to further decline to about 0.43 per cent during the current fiscal, the lowest among all large economies in the world, said a CBDT release.

Related Stories:
Net direct tax collections up 47% in April-July
Ministry sees scope for higher direct taxes share in overall tax kitty

More Stories on : Economy | Taxation

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Pusa 1121 rice exports allowed through 6 ports

Stage being set for monsoon exit from West

SIAM to educate consumers on saving fuel

Inflation rate drops to 12.34% on cheaper food items

Direct tax collections up 4% in August

Sun Pharma extends open offer by a month

Tata Power acquiring 11.4% stake in Australian geothermal energy co

KEC International (Rs 426.5): Buy

Banks would need Rs 5.68 lakh cr additional capital in next 5 years

Bengal Govt to hold talks with Trinamool leaders today