Direct tax collections up 132% to Rs 12,642 crore

Net direct tax collections rose 132 per cent to Rs 12,642 crore (Rs 126.42 billion) in the first month of the current fiscal, as against Rs 5,441 crore (Rs 54.41 billion) in the corresponding month of the previous fiscal.

However, the Securities Transaction Tax collections declined by 18 per cent in April to Rs 351 crore (RS 3.51 billion), compared with Rs 431 crore in the corresponding month of 2007-08. The STT collections indicate a decline in the volume of transactions on the stock exchanges due to prevailing bearish sentiment, an expert said.

Collections from the Fringe Benefit Tax and Banking Cash Transaction Tax have also witnessed a decline in April over the corresponding month a year ago, sources said. However, Personal Income Tax (including STT, FBT and BCTT) was up 124 per cent at Rs 8,596 crore (Rs 85.96 billion) in April, compared with Rs 3,834 crore (Rs 38.34 billion) in the same month a year ago.

Corporation income tax collections also saw a 142 per cent increase at Rs 3,881 crore (Rs 38.81 billion), compared with Rs 1,602 crore (Rs 16.02 billion) during the month a year ago. Other collections were at Rs 165 crore (Rs 1.65 billion) in the month, compared with Rs 5 crore (Rs 50 million) a year ago.

"It is difficult to draw any conclusion from a month's tax collection numbers," sources said, adding advance tax payments in June would give some cues about tax collections in 2008-09. The budget estimate for direct tax collections in 2008-09 is Rs 3,65,000 crore (Rs 3,650 billion).

Direct tax collections grew by 35 per cent to around Rs 3,12,000 crore (Rs 3120 billion) in 2007-08, or Rs 7,240 crore (Rs 72.4 billion) more than the revised estimate of Rs 3,04,760 crore (Rs 3047.6 billion) for the year. Direct tax collections had grown by over 39 per cent to Rs 2,30,184 crore (Rs 2301.84 billion) in 2006-07.