The Hindu Business Line : More I-T assessees drive up net direct tax collections

The Centre’s direct tax revenues continue to be buoyant, with net collections recording 44.85 per cent increase during April-November 2007 at Rs 1,45,053 crore, as compared to collections level of Rs 1,00,135 crore during the same period last year.

The robust growth in direct tax collections has come on the back of increase in the number of income-tax assessees in recent years (3.19 crore in financial year 2006-07 from 3 crore assessees in financial 2002-03) and certain steps taken by the Government for widening the tax base.

From assessment year 2006-07, all partnership firms are compulsorily required to file returns of income. Moreover, the basis of filing returns of income has also been shifted from “total income” to “gross total income”.

Withdrawing benefits

The Government has withdrawn tax benefits available to certain co-operative banks. It is also expected to use the annual information return data to increase the tax base.

The latest tax collection data released by the Central Board of Direct Taxes shows that corporate tax collections grew 46.62 per cent for the period under review at Rs 86,526 crore, up from Rs 59,015 crore during the same period last year.

Personal income-tax (including FBT, STT and BCTT) grew by 42.48 per cent at Rs 58,303 crore (Rs 40,920 crore). Securities Transaction Tax collections grew 78.93 per cent to Rs 4,924 crore (Rs 2,752 crore). While fringe benefit tax collections grew 16.76 per cent to Rs 3,064 crore (Rs 2,624 crore), banking cash transaction tax collections also grew by 14.34 per cent to Rs 359 crore (Rs 314 crore).

Across states

An official release said that corporate tax growth was highest in the North-Eastern region (Guwahati) at 255.64 per cent, followed by Mumbai (103.17 per cent), Kerala (76.45 per cent), eastern Uttar Pradesh (71.22 per cent), and Bihar and Jharkhand (51.98 per cent).

Personal income-tax growth was highest in Madhya Pradesh and Chhattisgarh region at 157.67 per cent, followed by Gujarat (68.83 per cent), Andhra Pradesh (56.62 per cent), North Western region, i.e. Punjab, Haryana, Himachal Pradesh and Jammu & Kashmir (53.22. per cent), and Maharashtra (47.24 per cent).

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