Direct tax collections rise 21 percent

India's gross direct tax collections increased 21.10 percent to Rs.63,252 crore in the first two months of the current financial year, surpassing the government's expectations.

According to data released by the finance ministry, gross collections from direct tax was Rs.63,252 crore in April-May period of this year as compared to Rs.52,231 crore recorded in the corresponding period last year, registering an increase of 21.10 percent year-on-year.

In the federal budget, the government has set a target of nearly 18 percent increase in collections from direct tax in the whole financial year 2013-14.

In the first two months of the current financial year, gross collection of personal income tax jumped by 27.29 percent to Rs.34,805 crore, while gross collection of corporate taxes showed an increase of 14.91 percent to Rs.27,957 crore.

Net direct tax collections was up by 6.44 percent and stood at Rs.37,596 crore, as compared to Rs.35,322 crore in the same period in the last fiscal, the finance ministry said in a statement. Wide gap in gross and net direct tax collections was because of high refunds.

Net collection of wealth tax increased by 86.67 percent to Rs.28 crore in April-May period, while collections from Securities Transaction Tax dropped by 14.63 percent to Rs.461 crore.