Govt expects to meet direct tax target despite slowdown

The government is hopeful of achieving the direct tax collection target of Rs 3,95,000 crore during this fiscal year, despite the slowdown which may pull down the economic growth rate to 7-8 per cent during FY09.

"We are confident of achieving the 2008-09 target of Rs 3,95,000 crore," Central Board of Direct Taxes (CBDT) Chairman N B Singh told reporters here today.

He said it is not an easy target though in view of the global slowdown but the government is not far behind from achieving it.

According to various estimates, economic growth in the country during 2008-09 would be in the range of 7-8 per cent, down from 9 per cent recorded in the previous fiscal.

The government in the budget for 2008-09 fixed the direct tax collection target of Rs 3,65,000 crore which was revised upwards to Rs 3,95,000 crore in June.

During the first seven months (April-October) of the current fiscal realisation from the direct taxes was Rs 1,66,905 crore, up 29.52 per cent from collection during the corresponding period last year.

Corporate tax collections were up 33.49 per cent at Rs 1,05,174 crore, while personal income tax rose by 23.14 per cent at Rs 61,433 crore during the seven-month period.