New Delhi: The government on Friday said direct tax collection has surpassed the Budget estimate of Rs3.70 trillion for the fiscal year 2010.
“It (direct tax collection) is well above the Budget estimate,” finance minister Pranab Mukherjee said in New Delhi on the sidelines of a function to commemorate the 20th foundation day of the small and medium sector lender Sidbi.
Direct tax realization, however, is likely to fall short of the enhanced target of Rs3.87 trillion, mentioned in the revised estimate for 2009-10. Direct taxes include, corporate tax, personal income tax and wealth tax.
During the 11-month period of the 2010 fiscal, direct tax collection was Rs2.78 trillion, nearly Rs1 trillion short of the Budget estimate.
In February, direct tax collection grew by a robust 27.54% on a year-to-year basis. Tax collection stood at Rs14,675 crore against Rs 11,506 crore in February 2009. This was against a negative growth of 19.84 per cent in January.
Corporate tax collection grew by 10.89% to Rs1.80 trillion in the April-February period compared to Rs1.62 trillion in the 11-month period the previous fiscal, while personal income tax grew at 1.84% to Rs97,692 crore during the period.
In February, corporate tax collection grew by a healthy 16.87%, while personal income tax mop up jumped by a robust 37.58%.
With more and more people investing in the stock markets, the securities transaction tax (STT) fetched a handsome Rs5,975 crore during the first 11 months of the just-concluded fiscal, which is a smart 17.65% over the year-ago period.
The government, in the current fiscal (2010-11) expects to mop up Rs4.30 trillion from direct taxes, higher by over 10% from what it is likely to collect the fiscal 2010. This is despite the widening of income tax slabs and reduction in surcharge on corporate taxes to 7.5% from 10%. The minimum alternate tax (MAT) will, however, has been increased from 15 to 18% on book profit of companies which do not fall under the tax net due to various exemptions.