Net direct tax collections up 14.6% in Apr-Nov

Net direct tax collection in April-November increased by 14.6 per cent to Rs 3,10,317 crore, compared with Rs 2,70,771 crore in the corresponding months of the previous financial year. The growth has picked up in the recent months reflecting an uptick in the economy. However, it is still lower than the 19 per cent increase projected in direct tax collections for the entire year.

Gross direct tax collection (before payment of income tax refunds) during April-November this year went up by 13.18 per cent to Rs 3,68,655 crore, against Rs 3,25,736 crore in the year-ago period.

Gross collection of corporation tax showed an increase of 9.66 per cent to Rs 2,25,124 crore in the eight-month period this year, compared with Rs 2,05,291 crore in the same period of 2012-13. Gross collection of personal income tax was up by 19.60 per cent to Rs 1,39,763 crore, against Rs 1,16,862 crore in the same months last year, the  ministry said on Thursday.

Collection of Securities Transaction Tax stood at Rs 3,053 crore, showing a growth of 4.73 per cent. Revenue from the levy of wealth tax posted a growth of 13.38 per cent to Rs 712 crore, against Rs 628 crore in the corresponding period of 2012-13.

The government has set a direct tax collection target of Rs 6,68,108 crore for 2013-14, against Rs 5,65,835 crore in 2012-13. The collections had fallen short of the target by about Rs 5,000 crore last year.

Direct tax collections had increased by 13.33 per cent to Rs 2,84,339 crore in April-September this year. Finance ministry officials say though there has been a pick-up in tax collections, meeting the Budget target would still be difficult considering a slower-than-expected growth in the economy.

India’s GDP is expected to rise by around 5 per cent this year. It grew by a decade low of 5 per cent in 2012-13. In the first quarter of the current financial year (April-June 2013-14) it grew by 4.4 per cent, lowest in four years. The growth was higher at 4.8 per cent in the second quarter (July-September) led by a mild upturn in industry and a sharp pick-up in agriculture.