New Delhi: Direct tax collections grew at a slow pace of 6.2% to 4.74 trillion in the first 10 months of 2014-15, in an indication that direct tax collections are going to fall well short.  

Finance minister Arun Jaitley had expected to gather 7.36 trillion in direct taxes in the year to March, but a slowing economy has impacted corporate profitability and tax collections. A higher outgo on refunds has also reduced the net tax collections.

On Thursday, indirect tax data had showed the government will need to collect 2 trillion in indirect taxes in the last two months of the financial year to meet its targets.

Adding the shortfall in indirect tax collections, the government is faced with a deficit in collections of more than 4.5 trillion that has to be bridged in February and March.

This will exert pressure on the government that has promised to stick to a fiscal deficit target of 4.1% of gross domestic product in the current fiscal year.

According to a finance ministry statement, in the April-January period, gross direct tax collection grew 11.4% to 5.78 trillion compared with 5.2 trillion collected in the year-ago period. While gross corporate tax collection rose 11% to 3.64 trillion from 3.3 trillion, personal income-tax collections was up 11.3% to 2.07 trillion from 1.86 trillion.

Though advance tax collections have grown at 13.26% in the April-January period as against 8.71% in the year ago period, growth in tax deducted at source collections has slowed to 7.8% from 16.6% in the same period last year.

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