Despite a deceleration in the manufacturing sector, the governments cash register continues to be on a roll. Its direct tax collections grew 42.9% during April-November 15 to Rs 1,40,373 crore. Corporate tax collections registered a growth of 45.74% to Rs 83,934 crore during April-November 15, 2007, up from Rs 57,593 crore in the corresponding period last year.
Personal income tax including fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT) grew 39.96% to Rs 56,212 crore in April-November 15, 2007, up from Rs 40,453 crore in the corresponding period previous fiscal.
With net collection of Rs 1,40,373 crore, over 52% of the budgeted direct tax target of Rs 2,67,490 crore has been achieved. The growth target required to achieve the Budget estimate of Rs 2,67,490 crore is 18%. However, with a robust growth rate of 40% in seven-and-a-half months of the fiscal, the direct tax collections may well exceed Rs 3,00,000 crore.
The booming stock markets have augured well for the government as well, with STT collections growing 69.37% to Rs 4,924 crore against Rs 2,908 crore in the corresponding period last year.
FBT collections rose 27.11% to Rs 3,078 crore in the period under review from Rs 2,422 crore collected in April-November 15, 2006. Characterising a decrease in incidence of large cash withdrawals, BCTT collections grew just 16.99% to Rs 320 crore in the period under review.
Tax deduction or collection at source (TDS/TCS) increased by over 50%, pointing to an all-round buoyancy in taxes. Self-assessment tax paid voluntarily before submission of tax return on the other hand, increased 89.3%, indicating continued improvement in tax administration and tax compliance levels.
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