DIRECT TAX COLLECTIONS MAINTAINS GROWTH OF OVER 40% DURING APRIL-SEPTEMBER 2007

Direct tax collections maintained a growth of over 40 percent for the six-month period ended September 2007. Net tax collections stood at Rs.1,11,055 crore, up from Rs.79,208 crore during the same period last fiscal.

Corporate tax recorded a growth of 41 percent at Rs.72,240 crore, up from Rs.49,813 crore during the previous fiscal. Personal income tax (including FBT, STT and BCTT) grew by 39 percent at Rs.40,744 crore, up from Rs.29,329 crore. The growth in Securities Transaction Tax (STT) was 48 percent and Banking Cash Transaction Tax (BCTT) was 17 percent. Fringe Benefit Tax (FBT) recorded a growth of 103 percent.

In terms of payment types, advance tax increased by 30 percent and tax deducted at source (TDS) by 48 percent indicating all-round buoyancy in taxes. Self-assessment tax grew by 80 percent, indicating better tax compliance levels.

Among regions, corporate tax growth was the highest in Bihar-Jharkhand at 265 percent, while it was lowest in Vidarbha at minus 34 percent. Personal income tax growth was the highest in Vidarbha at 83 percent, while it was lowest in the northeastern region at minus 17 percent. Mumbai region recorded a growth of 96 percent in corporate taxes and 40 percent in personal income tax. Delhi region recorded a growth of 8 percent in corporate taxes and 29 percent in personal income tax.