Refuting signs of any kind of an economic slowdown, direct tax collections continue to rise at 46.95% between April to July 2008. In fact as a testimony of India Incs strong performance, the growth in corporate tax was the highest at 50.08% to total Rs 41,598 crore till end July this fiscal as against Rs 27,718 crore during the corresponding period last fiscal.
Meanwhile, personal income tax including fringe benefit tax (FBT), security transaction tax (STT) and banking cash transaction tax (BCTT) grew at 42.82% to Rs 29,982 crore against Rs 20,993 crore during the same period.
The growth in personal income tax collections was also because of filing of income tax returns by salaried individuals last month.
FBT collections touched Rs 1,260 crore in April-July period against Rs 873 crore a year ago, an increase of 44.34%. Collections from STT however grew by a 15.46% and stood at Rs 2,164 crore in the first four months of the fiscal as against Rs 1,874 crore during the same period last fiscal. Collections from BCTT rose by 33.75% to Rs 223 crore till July 2008 as against Rs 167 crore till July 2007.
Robust growth in direct tax collections is a result of tax education and compliance mechanism put in place by the income tax department in the area of tax deducted at source (TDS) and tax collection at source (TCS) and indicates further improvement in tax administration and tax compliance levels, a finance ministry statement said.
TDS collections are being strengthened by the Central Board of Direct Taxes (CBDT) this fiscal in order to meet its new collection target for direct taxes. It has already revised its target of direct tax collections from Rs 3.65 lakh crore by 25% to about Rs 3.95 lakh crore.