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FY18 direct tax collection rises 19% owing to lower refunds, demonetisation

This could be attributed to lower refunds, to the tune of Rs 1.22 trillion, against Rs 1.34 trillion at this time a year before

Indivjal Dhasmana  |  New Delhi 

The country's gross revenue collection also grew 11.81 per cent at Rs 3,36,402.6 crore from Rs 3,00,874,6 crore a year ago

Pushed by lower and a demonetisation-backed higher base, direct have come to the help of the in its struggle to meet its target for 2017-18.

Direct collection, net of refunds, has risen 18.7 per cent till Monday, against the 15.7 per cent projected in the Estimates (BE). In absolute terms, the figure touched Rs 6.89 trillion, representing 70.3 per cent of the BE of Rs 9.8 trillion. Including refunds, gross direct collection rose 13.5 per cent to Rs 8.11 trillion.

This could be attributed to lower refunds, to the tune of Rs 1.22 trillion as on Monday, against Rs 1.34 trillion at this time a year before, as well as a higher base due to

Direct collection has shown significant improvement across all parameters, in terms of growth in each quarter. The growth of total gross direct collection was 10 per cent in the first quarter, 10.3 per cent in the next one, and 12.6 per cent in the third. Overall growth was 13.5 per cent, as on Monday.

Similarly, the growth rate of direct collection before had climbed from 14.8 per cent in Q1 to 15.8 per cent in Q2 to 18.2 per cent in Q3. This growth was 18.7 per cent, ason Monday.

Growth has been particularly good in collections under corporation — 4.8, 5.1 and 10.1 per cent, respectively, in the three quarters. And, overall, 11.4 per cent as on Monday. This collection after rose from 10.8 per cent in Q2 to 17.4 per cent in Q3 (18.2 per cent higher as on Monday).

The is trying to meet the target of 3.2 per cent of the country’s gross domestic product (GDP) for FY18. And, it is looking at a possible shortfall under the goods and services and proceeds from telecom spectrum.

The target also faces pressure due to less growth in than the had estimated. The first advance estimate for growth in 2017-18, issued on Friday, indicate the deficit as a percentage of nominal would be nearly 3.3 per cent, even if retained at the budgeted number of Rs 5.46 trillion.

First Published: Thu, January 18 2018. 01:08 IST