India’s April-August direct tax receipts up 42%

India’s April-August direct tax receipts up 42%

New Delhi: India’s net direct tax receipts in the April-August period rose 42% on year to Rs61030 crore, riding on robust economic growth, a finance ministry statement said on 6 September.

Corporate tax receipts were at Rs33766 crore in the first five months of the fiscal year to March 2008, up 49.5% from a year earlier, while income tax collections grew by 33.76% percent to Rs27206 crore.

“During 2007/08, direct tax collections have consistently maintained a growth of 40% reflecting continued buoyancy in the economy, better tax compliance and improved tax administration," the statement said.

The Indian economy expanded by 9.3% in the April-June period from a year earlier, powered by double-digit growth rates in manufacturing and services sector.

In July, Finance Minister Palaniappan Chidambaram said he was confident of meeting a direct tax target of Rs2.67 trillion for the year to March 2008, which would help trim the fiscal deficit to 3.3% of gross domestic product.

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