Comments
Net direct tax collections grew a modest 6.44 per cent in the April-June quarter, raising doubts over the ambitious Rs 6.7-lakh-crore direct tax collection target set for the current fiscal.
In absolute terms, net direct tax collections stood at Rs 89,705 crore (against Rs 84,274 crore in the same period last year).
It may be early days, but an economic slowdown seems to have impacted the collection. Net direct tax mop-up had grown 47 per cent in the same quarter last fiscal.
This was aided by the Centre’s conscious strategy to keep a leash on refunds.
Despite a marked economic slowdown in 2012-13, the Centre had in the Budget for the current year set an ambitious direct tax mop-up target of Rs 6.7 lakh crore, an increase of 18 per cent over the previous year. The picture is not that encouraging for gross direct tax collections in the first quarter this fiscal, as well. It is, however, a better performance compared with the first quarter of last year.
Gross direct tax collections grew 11.52 per cent to Rs 1,23,993 crore (Rs 1,11,183 crore).
Last fiscal, the gross direct tax collections recorded 6.77 per cent growth in the first quarter. Much of the Centre’s direct tax collection performance this fiscal hinges on the corporate earnings.
The Centre is betting big on corporate taxes despite the Revenue Department not meeting last year’s Budget estimate.
The revised estimate for corporate taxes in 2012-13 was lower than the Budget estimate by Rs 15,000 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.