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April-November direct tax mop up 13% off mark
November, 23rd 2011

Direct tax collection for the first eight months of the fiscal has fallen short by more than 13% of the projection, raising fresh concerns over the government's ability to meet the fiscal deficit target.

Figures available with the Central Board of Direct Taxes show that Rs 2.4 lakh crore has been collected between April 1 and November 20, against the projected Rs 2.9 lakh crore, which amounts to just 42% of the collection projected for the entire fiscal.

"Direct tax collection is a function of overall economic performance and GDP growth. Some sectors like financial sector have not performed well," said CBDT chairman M C Joshi. He, however, added that a clearer picture will emerge by mid-December when the third advance tax instalment is due.

Advance taxes are collected in four instalments - 15% by June 15; 40% by September 15; 75% by December 15 and 100% by March 15.

 
 
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