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Direct tax mopup misses target in five months to August
September, 02nd 2013

India's direct tax collection rose 12% year-on-year in the five months to August but remained far below the projected growth target of 20% for the fiscal, offering policymakers only a temporary respite in times of economic gloom.

Collection totalled about Rs 140,000 crore until August 29, according to data collated by the income tax department. Of this, corporate tax collection accounted for Rs 70,000 crore and income tax Rs 67,000 crore, the data showed.

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While the government has projected direct tax collection of Rs 6.68 lakh crore for the entire fiscal, officials said a clearer picture will emerge only after September 15, which is the last day for receipt of the second installment of advance tax.

"So, far, the collection is up. But there is an uncertainty over the total collection at the end of fiscal. We are yet to collect the September installment of advance tax payments," a senior I-T official told ET. While advance tax is collected every quarter, Tax Deducted at Source (TDS) and Securities Transaction Tax (STT) are collected through the fiscal year.

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