Direct tax mop-up shortfall to be 40,000 cr in FY16: Adhia

The finance ministry expects direct taxes to yield Rs 30,000-40,000 crore short of the Budget Estimate, but even then it is confident of meeting the fiscal deficit target of 3.9 per cent of gross domestic product in the current financial year, without cutting expenditure. The confidence is because of robust indirect tax collections.

Direct tax collection posted a 12.63 per cent growth in the first eight months of FY16, at 46.26 per cent of the budgeted target.

"We are optimistic. Advance tax numbers are expected in December. There could be marginal shortfall in direct taxes, to the tune of Rs 30,000-40,000 crore," Revenue Secretary Hasmukh Adhia told reporters on Tuesday.

The latest estimates are lower than the revenue department's earlier fears of Rs 50,000 crore shortfall, expressed in October.