The direct tax collection has grown by more than four times in last seven years when with the last year's tally standing at Rs 4,46,000 crore as against over Rs 1,00,00 crore in the year 2003-04. The contribution of direct tax to the total revenue has grown to 64% over the years, which is an indication of a developed economy, said member of the central board of direct taxes (CBDT) Manjari Kacker. She was addressing the inaugural function of the 65{+t}{+h} batch of IRS probationers joining the National Academy of Direct Taxes (NADT).

Kacker said that the importance of direct taxes has grown over the years. In the 1970s the income tax rate was as high as 97% along with other taxes wealth tax and gift tax. A high rate led to large-scale evasion, but the compliance has only increased as the rates were eased gradually.

The income tax department's importance is expected to grow as the economy grows. "India is among the fastest growing economies of the world and as the country develops, the taxman's will have a complex role to play," said Kacker.

The 65{+t}{+h} batch of IRS officials includes 126 probationers joining the income tax department as Indian Revenue Service (IRS), officers after passing the civil services examinations.