New Delhi: Direct tax collections, including corporate and personal income tax, have grown 46.95% to Rs71,648 crore in April-July this year mainly on account of surge in TDS receipts and buoyancy in corporate profits.
“Robust growth in direct tax collections is a result of tax education and compliance mechanism put in place by the Income Tax department in the area of tax deducted at source (TDS) and tax collection at source (TCS) and indicates further improvement in tax administration and tax compliance levels,” said a Finance Ministry statement.
Growth in corporate TDS/TCS was particularly high at 60.6%. Analysts said growth in tax collections, despite slowdown in industrial production, will help the Centre meet fiscal deficit targets while footing the bill of the Sixth Pay Commission recommendations.
The Finance Ministry has already revised its target of direct tax collections from Rs3,65,000 crore to about Rs4,00,00 crore.
During the first four months of this fiscal, corporate taxes grew by 50.08% and stood at Rs41,598 crore against Rs27,718 crore during the corresponding period last fiscal.
Meanwhile, personal income tax, including fringe benefit tax, security transaction tax and banking cash transaction tax grew at 42.82% to Rs29,982 crore against Rs20,993 crore during the same period.
FBT touched Rs1,260 crore in April-July period against Rs873 crore a year ago, and grew 44.34%.
However, the revenue collections from STT rose 15.46% and stood at Rs2,164 crore during that period while collections from BCTT was up 33.75% to Rs223 crore.