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India's Direct Tax Collection Soars 47% During Apr-Jul Period, Says Finance Ministry
August, 22nd 2008

Thursday the media reported that according to an Finance Ministry announcement, the direct tax collection for the April - July period of 2008 rose 46.95% to Rs.71, 648 crores from Rs.48, 756 crores during the corresponding period of last year. The Ministry said that it was an indication of a buoyant economy.

India is the third largest Asian economy following China and Japan that comprises mainly advance tax payments, tax deducted at source-TDS, self-assessment tax payments, and post-assessment tax collections. At the level of the taxpayer, advance tax payments and tax deducted at source are substitutes and inversely related to each other, that is, if the tax deducted at source is high, a relatively smaller amount is payable as advance tax.

The ministry said that during April-July 2008, the TDS on payments received by companies increased 60.55% to Rs. 22,128 crores from Rs.13, 782 crores in the last corresponding period.

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