A booming economy and better tax compliance have enabled the government post a 40 per cent jump in direct tax collection at Rs 1,21,950 crore (Rs 1219.50 billion) till October 15 this fiscal against Rs 86,751 crore (Rs 867.51 billion) during the same period last fiscal. Corporate tax contributed Rs 75,549 crore (Rs 755.49 billion), up by 40.29 per cent from Rs 53,853 crore (Rs 538.53 billion) during same period in the previous fiscal, an official statement said on Thursday.
Personal income-tax, fringe benefit tax, securities transaction tax and banking cash transaction tax yielded 45.13 per cent more at Rs 46,320 crore (Rs 463.20 billion) against Rs 32,821 crore (Rs 328.21 billion).
Bullish securities market led to a collection of Rs 3,784 crore (Rs 37.84 billion) through securities transaction tax, up 48.05 per cent against Rs 2,556 crore (Rs 25.56 billion).
Banking Cash Transaction Tax collections were up 20.22 per cent at Rs 284 crore against Rs 236 crore (Rs 2.36 billion).
Fringe Benefit Tax collections recorded a growth of 87.92 per cent at Rs 2,326 crore (Rs 23.26 billion) against Rs 1,238 crore (Rs 12.38 billion). While tax deducted at source grew by 49 per cent, advance tax collections rose by 30 per cent till September 15.
Growth in TDS is a strong indicator of increasing employment, employee compensation and private investments. Growth in advance direct tax collections implies better profitability and improved cash flows in businesses particularly in the core, consumption and financial sectors.
Growth in direct tax collections is also due to better tax compliance which is indicated by an increase of 64 per cent in self-assessment tax.
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