Economy

Direct tax mop-up rises 15.8% in H1

Our Bureau New Delhi | Updated on January 08, 2018 Published on October 11, 2017

Tax experts believe compliance has improved after GST implementation, demonetisation

Aided by better compliance from certain non-corporate assessees, the Centre’s net direct tax collections grew 15.8 per cent in April-September 2017 to ₹3.86 lakh crore. This represents 39.4 per cent of the total Budget estimate of direct taxes for 2017-18 (₹9.8 lakh crore).

Last fiscal year, till September 2016, about 38.65 per cent of the Budget estimates of direct taxes for 2016-17 had been achieved.

Wider base cited

The increase in collections could be attributed to an increase in the personal income-tax payer base post demonetisation and the effect of GST implementation, tax experts said, adding that this can be gauged by the fact that in the first half last fiscal year the collections were up only 8.95 per cent.

In the April-September 2017 period, the gross collections (before adjusting for refunds) have increased by 10.3 per cent to ₹4.66 lakh crore. Refunds amounting to ₹79,660 crore were issued in the April-September 2017 period, according to an official release.

In terms of advance tax, ₹1.77 lakh crore had been received up to September 30, a growth of 11.5 per cent over the corresponding period last year.

Tax experts feel that the Centre is well on course to meet its ambitious Budget estimate for direct tax collections this year.

Abhishek Goenka, Partner and Leader, Corporate and International Tax, PwC India, said that growth in corporate tax indicates some resilience and momentum, and is perhaps an outcome of the phasing out of many incentives. However, this growth could be pared downwards by the end of the year.

Sudhir Kapadia, National Tax Leader, EY, said that corporate tax has increased on expected lines, but the real impact has come from personal income-tax. “For calculating personal income-tax, the government includes contributions of sole proprietary business owners. It is not only salaried; any non-corporate will come under personal income-tax. It is fair inference to say that personal income-tax collections have improved due to better compliance of non-corporate assessees, partly because of demonetisation and partly due to GST inducing better compliance in direct tax,” he said.

Girish Vanvari, Head of Tax, KPMG in India, said that this was on expected lines. “With demonetisation, more and more activities in the economy are turning to be official, especially real-estate deals and transactions of people not in the tax net.

“Otherwise, the economy is not doing well. It is just that better reporting is happening right now. This will only go up in the next one year,” Vanvari said.

Published on October 11, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
null
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.