Direct tax collection has not picked up as anticipated with the net direct tax mop-up being Rs 73,990 crore during the first four months of the current fiscal up to July 2009, an increase of nearly 3% over the same period last year.
Despite an improvement in corporate performance in the last few months, the same has not been reflecting in the tax collection. Growth in corporate taxes was 2.6% at Rs 42,685 crore against Rs 41,598 crore during the same period last year. Personal income tax, including STT, FBT and residual BCTT, grew at 4.3%.
The Central Board of Direct Taxes said the lower growth in net collection was mainly on account of higher tax refund outgo of 53% at Rs 20,768 crore against Rs 13,542 crore last fiscal.
Last year, the total direct tax mop-up in the first four months was Rs 71,648 crore. The collection in July this year remained positive at Rs 14,525 crore as it grew very marginally from Rs 14,275 crore during July 2008.
Securities Transaction Tax (STT) grew by 3.5% during April-July 2009 at Rs 2,240 crore against Rs 2,164 crore in the corresponding period last fiscal.
Before the slowdown in September 2008, the annual tax growth was in the range of an average 30%-40%. But by the close of the last fiscal in 2008-09, the net direct tax collection was Rs 3,38,212 crore, up from Rs 3,12,202 crore during 2007-08, registering a growth of 8.33%. In the last fiscal, the total corporate tax collection was Rs 2,13,823 crore against Rs 1,92,911 crore in the previous year.