Direct tax collection in January grew by an impressive 34% as against a negative rise in tax collection in the last two months of 2008. The total tax collected in the first 10 months up to January 2009 have gone up to Rs 2,47,396 crore, about 67% of the budgeted target of Rs 3.65 lakh crore.
The January results are encouraging given the fact that in December 2008 there was a negative growth of 12.51% compared to a year ago period. In November, the negative growth was as high as 36%. The Central Board of Direct Taxes hopes to meet the budget target even if it falls short of the revised estimates of Rs 4 lakh crore.
The corporate tax collections in the 10 months up to January 2009 grew by 17.32% at Rs 1,57,039 crore against Rs 1,33,851 crore in the same period last year. The contribution of Fringe Benefit Tax, Securities Transaction Tax and Banking Cash Transaction Tax together have been Rs 90,010 crore in the April-January period, a growth of 6.71%.
STT, however, declined by 29.13% at Rs.4,815 crore against Rs 6,793 crore in the same period last year. In comparison, BCTT has shown an increase, having a growth of 16.12% at Rs 534 crore against Rs 460 crore last year.