The personal income tax collection in nine major Indian cities, including the metros such as Mumbai, Chennai, Bangalore and Hyderabad, has shrunk during 2008-09 despite the fact that total direct tax collections registered a modest growth of 8% during the last fiscal, according to tax collection data available with SundayET.

The other cities which witnessed an erosion in personal income tax collections owing to the ongoing economic slowdown, job loss and fall in equity markets include Nagpur, Bhopal, Meerut, Guwahati and Bhubaneswar.

While Mumbai division witnessed a shortfall in personal income tax collection of Rs 2,275 crore, or 5.6% in 2008-09 compared to 2007-08, Bhopal division witnessed an erosion in personal income tax collection by a whopping 43%, the highest in percentage term among all city divisions of income tax, according to the data.

The personal income tax includes fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transactions tax (BCTT). The direct tax, which comes under Central Board of Direct Taxes (CBDT), includes both corporate tax and personal income tax.

Cities such as Ahmedabad, Cochin, Delhi, Chandigarh, Kolkata, Patna, Jaipur, Lucknow and Kanpur, however, witnessed growth in personal income tax collections. In percentage terms, personal income tax collection in Lucknow was the highest at 23%, followed by Kolkata with 20% and Jaipur at 16%. The overall personal income tax grew 4.26%, from Rs 1,18,904 crore in 2007-08 to Rs 1,23,967 crore in 2008-09.

Despite the slowdown, most Indian cities contributed more corporate income tax during the last financial year against a year earlier though cities such as Meerut, Guwahati and Jaipur witnessed a poor show in 2008-09 as against a year earlier.