Direct collection tax grows 40 pc by Oct 15

New Delhi, Oct 18 (UNI) Net direct tax collections grew by over 40 per cent to Rs 1,21,950 crore in current fiscal by October 15, up from Rs 86,751 crore during the same (April-October 15) period last fiscal.

A Finance Ministry statement today said corporate tax recorded a growth of 40.29 per cent at Rs 75,549 crore, up from Rs 53,853 crore during the previous fiscal.

Personal income tax grew by 41.13 per cent at Rs 46,320 crore, up from Rs 32,821 crore. This comprised of growth in Securities Transaction Tax (STT) at 48.05 per cent (Rs 3,784 crore as against Rs 2,556 crore) and Banking Cash Transaction Tax (BCTT) at 20.22 per cent (Rs 284 crore as against Rs 236 crore), while Fringe Benefit Tax (FBT) recorded a growth of 87.92 per cent (Rs 2,326 crore as against Rs.1,238 crore).

The Ministry said growth of over 49 per cent in direct taxes deducted / collected at source is a strong indicator of increasing employment, employee compensation and private investments; while growth of about 30 per cent in advance direct tax collections is indicative of better profitability and improved cash-flows in businesses, particularly in the core, consumption and financial sectors.

Increase of 64 per cent in self-assessment tax confirms the trend of better tax compliance, the statement added.

UNI