Govt collects over Rs 1 lakh crore from direct taxes
October, 05th 2007
The booming economy helped the Centre collect 40 per cent more in direct taxes, comprising corporate and personal income taxes, at Rs 1,11,055 crore in the first half this fiscal from Rs 79,208 crore a year ago.
Corporate tax recorded a growth of 41 per cent to touch Rs 72,240 crore till September 30 this fiscal, up from Rs 49,813 crore in the corresponding period of the previous year, according to an official statement here.
Collections from this tax was the highest at 265 per cent in Bihar, not known for much industrialisation, along with Jharkhand. On the other hand, corporate tax collections fell 34 per cent in Vidarbha region.
Personal income tax, including Fringe Benefit Tax (FBT), Securities Transactions Tax (STT) and Banking Cash Transaction Tax (BCTT), rose by 39 per cent at Rs 40,744 crore from Rs 29,329 crore in the corresponding period of the last fiscal.
Vidarbha, which has been in the news for agricultural distress and farmers' suicides, witnessed the highest tax collection growth from this levy at 83 per cent.
Country's financial capital Mumbai recorded a growth of 96 per cent in corporate taxes and 40 per cent in personal income tax. In contrast, the Delhi region saw collections from corporate taxes growing by only eight per cent and from personal income tax by 29 per cent.
Bullish capital markets enabled the government to collect 48 per cent higher collections from STT, the statement said.
Collections from BCTT, which was levied to keep track of black money, grew by 17 per cent, while revenue from FBT recorded a growth of 103 per cent.
The government has set a target of collecting Rs 2,67,490 crore through direct taxes this year, which finance ministry officials said would be surpassed easily.
In fact, direct tax collections are now expected to cross Rs 300,000 crore and for the first time would exceed the revenue from indirect taxes, officials said.
According to the statement, advance tax payments increased by 30 per cent and tax deducted at source by 48 per cent during the first half. This indicates all-round buoyancy in taxes. Besides, self-assessment tax grew by 80 per cent, indicating better tax compliance, the statement said.