The Hindu Business Line : Direct tax collections up 42.74 pc in April-Dec

The Centre's direct tax revenues continue to be buoyant, with net collections in April-December 2006 recording a 42.73 per cent increase to Rs 1,46,405 crore as compared to Rs 1,02,577 crore in the same period in the previous year.

The net collections up to December 29 represent about 69.5 per cent of the Budget estimate of Rs 2,10,684 crore for direct taxes in 2006-07. Going by this trend, direct tax collections would comfortably surpass the Budget estimates for 2006-07.

At this stage during last fiscal, the net direct tax collections of Rs 1,02,577 crore represented 58 per cent of the Budget estimate of Rs 1,76,812 crore for fiscal 2005-06.

The Budget estimate of Rs 1,76,812 crore was later revised downwards to Rs 1,70,077 crore. In fiscal 2005-06, direct tax collections stood at Rs 1,65,208 crore. The direct tax collections in 2004-05 stood at Rs 1,32,771 crore.

Official sources said that the downward revision in 2005-06 was mainly due to the fact that the Budget estimate for that year was pegged at a 34 per cent increase over the previous year. This was despite the 23-25 per cent growth rates in actual collections in the previous years.

Corporate tax

Meanwhile, corporate tax collections in April -December, 2006 increased by 51.63 per cent to Rs 93,768 crore from a level of Rs 61,842 crore in the same period in the previous year. Personal income tax (including fringe benefit tax) increased by 26.17 per cent to Rs 48,653 crore (Rs 38,561 crore).

While securities transaction tax (STT) collections stood at Rs 3,381 crore (Rs 1,718 crore), banking cash transaction tax (BCTT) stood at Rs 360 crore (Rs 194 crore). Fringe benefit tax collections for the period under review stood at Rs 2,945 crore (Rs 1,784 crore).

As regards the December 15 instalment of advance tax, the collections (both corporate and personal income tax) were up 44.72 per cent on a year-on-year basis at Rs 37,071 crore (Rs 25,615 crore).

Corporates are expected to pay 75 per cent of their estimated tax dues for the financial year as advance tax by December 15.