Higher corporate earnings helped the direct tax kitty swell to Rs 68,675 crore during the first quarter of the current fiscal year, with the corporate advance tax growing over 30 per cent during the period the fastest since 2005.
According to the government figures released today, the net direct tax collection registered a 15.49 per cent rise during
April-June quarter at Rs 68,675 crore as against Rs 59,465 crore during the same period last fiscal. The main contribution came from the corporate sector, the advance tax collection of which stood at Rs 26,876 crore during the first quarter as against Rs 20,456 crore in the corresponding period a year ago.
As such, corporate taxes stood at Rs 43,439 crore during the period as against Rs 35,709 crore a year ago, registering an increase of 21.65 per cent. Hit hard by the economic slowdown, the corporate advance tax collection had dipped in 2008-09, recovering during 2009-10 with an increase of 25.1 per cent.
The increase in advance tax collection was 30 per cent in 2006-07 and 26.9 per cent in 2005-06. In the Budget for 2010-11, the government had estimated direct tax collection of Rs 4.30 lakh crore, an increase of 13 per cent over the last budget.
However, realisation from the personal income tax, which includes securities transaction tax and residual fringe benefit tax, grew only marginally by 1.24 per cent to Rs 24,075 crore during the April-June period as against Rs 23,780 crore a year ago. The securities transaction tax recorded a negative growth of 25.21 per cent and stood at Rs 1,094 crore from Rs 1,462 crore during the same corresponding period a year ago.