Direct tax collections dip 48% in Apr-May

The net direct tax collections during the first two months of the current fiscal fell by 47.93%, mainly on account of dolling out of large refunds by the I-T department.

Net direct tax collections, gross collections minus refunds, were down by 47.93% at Rs 12,954 crore during the first two months of the current fiscal, the finance ministry said in a statement.

The net direct tax collections was Rs 24,878 crore in the April-May period of 2010-11.

However, the gross direct tax collections during April-May went up by 37.34% to Rs 50,405 crore.

The decline in net direct tax collection was on account of 217% increase in tax refunds at Rs 37,451 crore. The same was Rs 11,824 crore in the April-May period of 2009-10.

The Central Board of Direct Taxes (CBDT) has provided a tax refund of Rs 11,824 crore in the April-May period of 2010-11 and Rs 73,000 crore in the entire fiscal.

"More than 40 lakh refunds had been issued in the current fiscal," the statement added. Last fiscal, the I-T department had made 85 lakh refunds.

The budget estimates for direct tax collections for the current fiscal is about Rs 5.33 lakh crore.