DIRECT TAX COLLECTIONS

Direct tax collections continued to record a growth of over 40 percent for the 1st April 2007 to 15th February 2008 in the current fiscal. Net direct tax collections stood at Rs.2,28,745 crore, up from Rs.1,61,776 crore during the same period last fiscal, registering a growth of 41.40 percent and achieving over 85 percent of budgeted direct tax target of Rs.2,67,490 crore. Corporate Tax registered a growth of 38.78 percent at Rs.1,38,073 crore, up from Rs.99,488 crore during the previous fiscal, while Personal Income Tax (including FBT, STT and BCTT) grew by 45.64 percent at Rs.90,356 crore, up from Rs.62,040 crore. Growth in Securities Transaction Tax (STT) was 84.64 percent (Rs.7,878 crore against Rs.4,267 crore) and Fringe Benefit Tax (FBT) was 29.75 percent (Rs.5,216 crore against Rs.4,020 crore). Banking Cash Transaction Tax (BCTT) grew by 16.81 percent (Rs.478 crore against Rs.409 crore).

Mumbai region has recorded the highest overall growth at Rs.83,363 crore compared to Rs.50,227 crore in the same period last fiscal (i.e. 65.97 percent) and its contribution to the direct tax collections in the country so far is 36.86 percent.

Among type of taxes, self-assessment tax (paid voluntarily before filing of tax return) recorded a growth of 62.9 percent while tax deducted / collected at source recorded a growth of 51.9 percent, indicating improved tax administration and better tax compliance levels.