The revenue collection continues to grow at snail's pace with the April-December 2012 direct tax mop up showing a meagre growth of 8%.
Any hope the government could derive was from the personal income tax, contribution from individuals, which showed a rise of 15% growth during this period. The government needs at least 15% growth in gross direct tax collection to meet its budget target of Rs 5.70 lakh crore for the current fiscal.
The net direct tax collection may not give an accurate picture of the revenue mop up as the refunds of amounts bigger than Rs 5 lakh have been withheld, and in any case will have to be cleared by the end of the fiscal year.
The net direct tax collection in the last nine months was up by 14% and stood at Rs 3,68,322 crore, as compared to Rs 3,23,956 crore in the same period of the last fiscal.
The gross direct tax collection during April-December of 2012-13 was up by 8% and stood at Rs 4,28,278 crore as against Rs 3,96,530 crore in the same period last year. Major contributor corporate taxes continued to be laggard with gross collection showing an increase of 5% and stood at Rs 2,83,170 crore in April-December as against Rs 2,69,850 crore during the same period last year. The gross collections of personal I-T was up at Rs 1,44,376 crore as against Rs 1,26,012 crore of last year same period.
Growth in net collection of Wealth Tax was 1.6% and stood at Rs 656 crore as against Rs 646 crore during the same period last year. To mitigate compliance burden on businesses held by individuals, firms or corporates who are using the financial services offered by banks, the Central Board of Direct Taxes (CBDT) has issued a notification granting exemption from tax deduction at source (TDS) on the payments of certain categories.