New Delhi, Aug 6 (UNI) Direct taxes grew by a robust 47 per cent in first four months of current finacial year, notwithstanding decline in industrial growth and high inflation.
Net direct tax collections in the April-July period went up to Rs 71,648 crore, a jump of 46.95 per cent from Rs 48,756 crore collected during the comparable period in the previous year, Finance Ministry said in a statement today.
Growth of 50.08 per cent in collection of corporate taxes at Rs 41,598 crore from Rs 27,718 crore indicate healthy business growth.
Personal income tax grew by 42.82 per cent to Rs 29,982 crore from Rs 20,993 crore, the statement said. This include Rs 1,260 crore of fringe benefit tax, up 44.34 per cent from Rs 873 crore collected in the April-July period of 2007.
Component of securities transaction tax recorded a growth of 15.46 per cent to Rs 2,164 crore from Rs 1,874 crore, while banking cash transaction tax also grew by a healthy 33.75 per cent to Rs 223 crore from Rs 167 crore during the comparable four months a year ago.
National capital Delhi top scored by recording a robust growth of 76.40 per cent in tax collections in first four months of 2007-08 but Mumbai, the country's financial hub, slipped to less than half the Delhi's growth at 36.33 per cent.
Other high growth regions in the country are Nagpur (77.80 per cent), Kochi (58.08 per cent), Kolkata (49.87 per cent), Hyderabad (40.69 per cent) and Bangaluru (40.25 per cent), the statement added.
The Finance Ministry said direct tax mop-up was driven by a growth of 44.56 per cent in tax deducted or collected at source (TDS/TCS), which stood at Rs 45,935 crore as against Rs 31,776 crore in the previous year. Growth in corporate TDS/TCS was particularly high at 60.6 percent.
It said robust growth in direct tax collections is a result of tax education and compliance mechanism put in place by the income tax department in the area of TDS/TCS. It also indicates improvement in tax administration and tax compliance levels.
The cost of direct tax collection,the Ministry said, had declined to an all-time low of 0.54 per cent in 2007-08, amongst the lowest in the world.
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