Direct tax collections up 13% in 9 mths of FY15

The growth rate of the collections, however, is still short of annual target of 16 per cent

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The direct tax collection during the first nine months of the current financial year increased by 12.93 per cent to Rs 5.46 lakh-crore over the corresponding period a year ago.

The growth rate of direct tax collections, however, is still short of annual target of 16 per cent. During the April- December period of last financial year, the government had collected Rs 4.84 lakh-crore.

According to the Budget 2014-15, the revenue mop up from direct tax is targeted at Rs 7.36 lakh crore for the current fiancial year.

During the nine-month period, corporate tax collection grew by 12.79 per cent at Rs 3.50 lakh-crore. It was Rs 3.10 lakh crore during the corresponding period last year.

Similarly, the personal Income Tax collection, was up 12.62 per cent, at Rs 1.90 lakh-crore in the April-December period as against Rs 1.69 lakh crore in the coresponding period last year.

Securities Transaction Tax (STT) collection surged 43.44 per cent at Rs 4,940 crore in the nine-month period due to buoyancy in the stock market.

The net direct tax collection rose at a lower pace of  7.41 per cent to about Rs 4.48 lakh crore, as against Rs 4.17 lakh crore in the same period last year, primarily on account of higher refunds.

Finance Minister Arun Jaitley have been talking about large number of refunds being given out by the Tax authorities.

The government has also said that actual tax mobilisation through direct and indirect taxes in current financial year would depend on factors such as growth in GDP and performance of the economy in the remaining part of the current fianancial year.

In the current fiscal, the government has budgeted to collect over Rs 13.6 lakh crore as tax revenue, which requires a 16 per cent growth in direct taxes and 20 per cent growth in indirect taxes to meet the target.

The economic growth is projected to be in the range of 5.4-5.9 per cent in the current financial year. The economic growth in first half (April-September) of this financial year was 5.5 per cent.