Direct tax collections up 29.52 per cent in April-October FY'09
November, 08th 2008
Net direct tax collections rate for seven months of this financial year registering a growth of 29.52 per cent. It stood at Rs166,905 crore up to October 2008 as compared to Rs128,864 crore for the same period of last year. The country remained successful to increase tax collection, despite global slowdown.
Corporate tax increased to 33.49 per cent and stood at Rs105,174 crore as against Rs78,785 crore. Income tax growth rate too increased registering a growth of 23.14 per cent. Fringe benefit tax (FBT) increased by 47 per cent and dividend distribution tax grew above 48 per cent which indicates sound financial health of the country despite global financial crisis.
The tax deduction at source (TDS) mechanism and better tax compliance helped to improve tax collection rate. Central Board of Direct Taxes (CBDT) said that tax deduction at source registered a growth of 35.78 per, and 52.76 per cent in self-assessment tax. However, the volatile nature of the stock market helped to show negative growth rate of 1.60 per cent for Securities transaction tax (STT).
Advance tax paying sectors such as mining, mineral, metal, engineering, banking, telecom, IT, pharma and consumer goods reported positive growth while low advance tax is paid by some sectors such as real estate, infrastructure, cement, automobile, power, textile and downstream oil companies.