Direct tax collection rises by 10.66 percent

Gross collection from direct taxes that include personal income tax and corporate taxes, increased by 10.66 percent to Rs.3,01,250 crore in April-September period of this year as compared to Rs.2,72,221 crore recorded in the same period last year, government data showed Tuesday.

Collections from personal income tax jumped by 16.15 percent to Rs.1,06,231 crore in the first half of the current financial year as compared to Rs.91,463 crore recorded in the same period last year, according to data released by the finance ministry here.

However, there was a sluggish increase in corporate taxes due to slowdown in growth that has hit general demands in the country.

Gross collections of corporate taxes increased by 7.93 percent to Rs.1,92,308 crore during the period under review.

Net direct tax collection stood at Rs.2,50,959 crore for the first six months of the current financial year as compared to Rs.2,26,653 crore recorded in the same period last fiscal, registering an year-on-year increase of 10.72 percent.

Difference in gross and net tax collection is due to refunds.

Wealth tax collection increased by 5.27 percent to Rs.499 crore during the period under review, while the collection of Securities Transaction Tax (STT) dropped by 6.45 percent to Rs.2,210 crore.