Home > Economic Growth, Taxation > Direct Tax Collections in India: Well above target

Direct Tax Collections in India: Well above target

A healthy growth in profits of India Inc is well reflected by a robust 25.4% growth in corporate tax collections in October 2010 to Rs11,818 crore (Rs9,424 crore in October 2009). This resulted in cumulative growth in corporate tax of 22.1% in April-October 2010.

It must be noted that direct tax collections during April-October 2009 had risen by only 3.9%, mainly on account of a global slowdown. Thus, growth for the current period has a cushion of the low base in the previous year.

 (in Rs crore) Apr-Oct 10 Apr-Oct 09 % growth
Net direct tax 2,04,351 1,73,510 17.8%
Corporate Tax 1,34,251 1,09,996 22.1%
Personal Income Tax (including STT, and residual FBT and BCTT) 69,722 63,195 10.3%
Securities Transaction Tax (STT) 3,602 3,865 -6.8%
Wealth Tax 378 319 18.5%

While tax collections on personal incomes rose by 10.3% during the seven months ended October 2010, the securities transaction tax, which is a part of personal income tax segment, dipped by 6.8%.

Sunil Mitra, Union revenue secretary, has set a tax collection target for the current fiscal at Rs7.45 lakh crore. Of this, Rs3.15 lakh crore is expected to be met through indirect taxes and Rs4.30 lakh crore through direct taxes.

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Categories: Economic Growth, Taxation
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