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Tax mop-up gives hope to Govt. to meet Budget target
October, 13th 2009

The Government is optimistic of meeting the Budgeted Tax target which amounts to around Rs. 3.70 lac crore, as the direct tax collection crossed Rs. 1.50 lac crore (primarily personal income tax and corporate tax) crore mark in the first half of the fiscal.

If the amount (Rs. 1.54 lac crore) accounts for 40% of the total collection, then the government can hope for collecting nearly Rs. 2.25 lac crore in the next half of this fiscal which will sum the total to Rs. 3.79 Lac crore.

Though advance tax collection declined in the previous three quarters, it grew in the second quarter of 2009 by 6.21% which reflects clear signs of economic revival in industry.

Advance tax collections for the second quarter reflects that consumer durables, have shown a strong recovery as also the software sector, cement and PSU banks, however the realty sector and steel remained down.

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