Direct tax collections rise 14.6 percent in April-January

India’s direct tax collections grew by 14.57 percent to Rs.425,274 crore in the first 10 months of the current financial year, sharply lower than the budgetary target of around 20 percent growth, official data showed Wednesday.

“Gross direct tax collections during April-January of the current fiscal was up by 14.57 percent at Rs.425,274 crore as against Rs.371,188 crore in the same period last fiscal,” the finance ministry said in a statement.

Considering the pace in the first 10 months, the government is unlikely to meet the full year budgetary target of Rs.5.33 lakh crore.

The decline in tax collections will put further pressure on the fiscal deficit. According to most analysis and projections, the fiscal deficit is likely to be substantially higher than the 4.6 percent budgetary target.

Gross collections of corporate taxes grew by 11.87 percent to Rs.285,837 crore in the April-January period of 2011-12 as compared to Rs.255,514 crore in the corresponding period of last year.

Gross collections of personal income tax jumped by 20.43 percent to Rs.138,730 crore in the period under review as compared to Rs.115,192 crore in the corresponding period of last year.

The growth in net tax collections is even worse as tax refunds have risen sharply. Net direct tax collections in the first 10 months of the financial year ending March 31 were at Rs.346,959 crore against Rs.317,500 crore the same period of the last fiscal, registering a growth of 9.28 percent.

Wealth tax collections grew by 45.11 percent to Rs.682 crore in the period under review while collections from securities transaction tax (STT) slumped by 27.19 percent to Rs.4,145 crore.