DIRECT TAX COLLECTIONS MAINTAIN GROWTH OF OVER 40 PERCENT UPTO THE PERIOD ENDED OCTOBER 2007

Direct tax collections maintained a growth of over 40 percent up to the period ended October 2007. Net tax collections stood at Rs.1,28,864 crore, up from Rs.90,180 crore during the same period last fiscal registering a growth of 43.15 percent.

Corporate tax recorded a growth of 45.71 percent at Rs.78,785 crore, up from Rs.50,072 crore during the previous fiscal. Personal income tax (including FBT, STT and BCTT) grew by 39.39 percent at Rs.49,890 crore, up from Rs.35,805 crore. Growth in Securities Transaction Tax (STT) was 57.61 percent (Rs.3,783 crore against Rs.2,400 crore) and Fringe Benefit Tax (FBT) was 29.94 percent (Rs.2,755 crore against Rs.2,120 crore). Banking Cash Transaction Tax (BCTT) grew by a modest 15.79 percent, indicating decreasing incidence of large cash withdrawals.

In terms of payment types, advance tax increased by 28.44 percent and tax deducted at source (TDS) by 49.13 percent indicating all-round buoyancy in taxes. Self-assessment tax grew by 77.64 percent, indicating better tax compliance levels.

Refund payouts in personal income tax (PIT) category were ahead by 47.16 percent (Rs.6,135 crore against Rs.4,169 crore), with over 30 lakh refunds having been issued during the period. The Refund Banker Scheme - launched in Delhi and Patna towards the end of last fiscal and extended subsequently to Kolkata, Chennai, Bangalore and Mumbai - has helped increase the pace of refunds. It will now be extended to the entire country for the PIT category of taxpayers.

Continued buoyancy in direct tax collections indicates healthy growth in the economy, better tax administration and improving tax compliance levels.