Direct tax collection falls Rs6,000 crore short of revised target
May, 22nd 2009
Direct tax collections in the country for fiscal 2008-09 stood at Rs339,000 crore, Rs6,000 crore short of the government's revised target of Rs345,000 crore, as the economic slowdown hit corporate earnings.
The government had lowered its target for direct tax collection from Rs364,000 crore to Rs345,000 crore in order to factor in the effects of the economic crisis on revenues.
At Rs339,000 crore, direct tax collections for the fiscal 2008-09, however, was higher than the Rs312,000 crore collected during fiscal 2007-08.
As per official figures, net direct tax collections in fiscal '09 were up 8.33 per cent compared to FY08.
Corporate tax collections rose 10.84 per cent to Rs213,000 crore from Rs193,000 crore in the previous year. Personal income tax (including FBT, STT and BCTT) grew 9.09 per cent to Rs124,000 crore in 2009 from Rs119,000 crore.
Fringe benefit tax (FBT) collections were up 12.38 per cent (Rs7,997 crore as against Rs7116 billion). Securities transaction tax (STT), however, declined 36.95 per cent to Rs5,408 crore from Rs8,577 crore, according to the official release.
Direct tax collections exceeded the previous year's collection by about Rs26,000 crore despite the economic slow-down and substantial relief to non-corporate taxpayers.
Direct tax collection has more than tripled from Rs105,000 crore in FY04 to Rs3.38 trillion in FY09, growing at an average annual growth of 26.75 per cent.
Direct tax to GDP ratio has increased from 3.81 per cent in FY04 to 6.23 per cent in FY09, but has fallen from 6.61 per cent in 2007-08 top 6.23 per cent in 200708.