Published on Wed, Feb 08, 2012 at 16:32 | Source : PTI
Updated at Thu, Feb 09, 2012 at 12:20
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Direct tax collection to miss Budget estimates
With the direct tax collection growing at a slower pace of 9% this fiscal so far, the government is likely to miss the revenue mop up target for the 2011-12.
With the direct tax collection growing at a slower pace of 9% this fiscal so far, the government is likely to miss the revenue mop up target for the 2011-12.
According to the data released by the finance ministry, the net direct tax mop-up during the April-January period rose 9.28% to Rs 3.46 lakh crore mainly on account higher realisation of personal income tax and corporate tax. The government, however, may miss the full year direct tax collection target of Rs 5.32 lakh crore which envisaged a growth of 19% over the last year.
The net direct tax collection was Rs 3.17 lakh crore in the 10 month period of the 2010-11 fiscal. The slow growth in direct tax collection comes on the back of declining GDP growth rate which is estimated at 6.9% in 2011-12, down from 8.4% a year ago. The gross direct tax collection during the April-January period, however, was up by 14.57% at Rs 4.25 lakh crore. It was Rs 3.71 lakh crore in the corresponding period a year ago.
Amid slowdown in industrial activities due to global factors and high domestic interest rates, revenue collections have come under pressure. As per the official data, gross corporate tax collection was up 12% at Rs 2.85 lakh crore in April-January from Rs 2.55 lakh crore in same period in the previous fiscal.
The personal income tax collection in the 10 month period of the current fiscal was up by 20.43% at Rs 1.38 lakh crore.
