New Delhi: Belying fears of slowdown in manufacturing or services sector, direct tax collections have maintained a growth of over 40% in April-October period of the fiscal and are set to surpass indirect tax revenues for the first time.
The direct tax collections have gone up 43.15% during the period ending 31 October to Rs1,28,864 crore from Rs90,180 crore during the same period last fiscal, said a statement from the Finance Ministry.
“Continued buoyancy in direct tax collections indicates a healthy growth in the economy, better tax administration and improving tax compliance levels,” said a Finance Ministry official.
Corporate tax recorded a growth of 45.71% at Rs78,785 crore, up from Rs54,072 crore during the previous fiscal, thus belying fears of economic slowdown in the manufacturing or services sector.
During the same period, personal income tax (including FBT, STT and BCTT) grew 39.39% to Rs49,890 crore from Rs35,805 crore a year ago period, he said.
The Government has set a target of collecting Rs2,67,490 crore through direct taxes this year, which, the finance ministry official said, would be surpassed easily.
In fact, direct tax collections are now expected to cross Rs300,000 crore and for the first time would exceed the revenue from indirect taxes, he said.
Growth in Securities Transaction Tax (STT) was 57.61% (Rs3,783 crore against Rs2,400 crore) and Fringe Benefit Tax (FBT) was 29.94% (Rs2,755 crore against Rs2,120 crore).
Banking Cash Transaction Tax (BCTT) grew a modest 15.79% during April-October, indicating decreasing incidence of large cash withdrawals.
In terms of payment types, advance tax increased by 28.44% and tax deducted at source (TDS) by 49.13% indicating all-round buoyancy in taxes.
Self-assessment tax grew by 77.64%, indicating better tax compliance levels.
Refund payouts in personal income tax (PIT) category were ahead by 47.16% (Rs6,135 crore against Rs4,169 crore), with over 30 lakh refunds having been issued during the period.