Corporate tax collections fall short of revised estimate
May, 22nd 2009
The Centres corporate tax collections for financial year 2008-09 have fallen short of the revised estimate by about 3.68 per cent. On the other hand, personal income-tax collections are a tad better than the targeted revised estimate.
Official data released on Thursday by the Central Board of Direct Taxes (CBDT) showed that corporate tax collections in 2008-09 stood at Rs 2,13,823 crore, lower than the revised estimate of Rs 2,22,000 crore.
The year-on-year growth in corporate tax collections during 2008-09 stood at 10.84 per cent.
This was lower than the 33.67 per cent jump in 2007-08.
Personal income-tax collections (including the Securities Transaction Tax, the Fringe Benefit Tax, and Banking Cash Transaction Tax) in 2008-09, at Rs 1,23,967 crore, were higher than the revised estimate of Rs 1,22,600 crore. On a year-on-year basis, personal income-tax collections grew 4.26 per cent in 2008-09. This was lower than the 36.64 per cent growth recorded in the previous year.
In 2008-09, FBT collections grew 12.38 per cent to Rs 7,997 crore (Rs 7,116 crore in 2007-08). The STT, however, declined by 36.95 per cent to Rs 5,408 crore (Rs 8,577 crore).
Direct tax collections
The Centres direct tax collections in 2008-09, at Rs 3,38,212 crore, were up 8.33 per cent over the Rs 3,12,202 crore garnered in 2007-08. In 2008-09, direct taxes accounted for over 55 per cent of the total central tax revenues. Net direct tax collections had recorded 36 per cent growth in 2007-08.
Industry observers said that the direct tax collections were hit by the global financial meltdown and the resultant slowdown in the Indian economy.
A CBDT release highlighted that direct tax collections exceeded the previous years collections by about Rs 26,000 crore despite the economic slowdown and the substantial relief provided to non-corporate taxpayers.
It also said that the collections include an additional tax of Rs 31,242 crore from demands raised by the Income-Tax Department.
Tax arrears of Rs 10,016 crore and current tax of Rs 21,226 crore account for this amount.
Collection of direct taxes has more than tripled from Rs 1,05,088 crore in 2003-04 to Rs 3,38,212 crore in 2008-09 at an average annual growth of 26.75 per cent. From 1990-91 to 2001-02, the average annual growth rate stood at 18.86 per cent.
The cost of collection, which increased to 0.66 per cent during 2008-09 from 0.54 per cent in 2007-08, still remains one of the lowest in the world, the CBDT release said.