Refunds pull down net direct tax collections by 17%

Driven by a hefty increase in tax refunds which more than doubled in the first quarter of the current fiscal, net direct tax collections dropped by almost 17% during the same period to Rs 57,268 crore.

The net direct direct tax collections stood at Rs 68,675 crore in the same period last fiscal.

Tax refunds recorded a 205.01% increase at Rs 46,868 crore in the April-June quarter of 2011-12 as against Rs 15,366 crore in the year-ago period, pulling down net direct tax collections.

However, gross direct tax collections during the same period (April - June 2011) were up by 23.91% at Rs 1,04,136 crore as against Rs 84,041 crore a year-ago.

Besides, belying fears of an economic slowdown, gross collection of corporate taxes was up 23.49% at Rs 68,223 crore against Rs 55,244 crore last year, whereas gross collection of personal income tax was up by 24.63% at Rs 35,859 crore against Rs 28,772 crore last year.