Slowdown has started hurting resource mobilisation for the government, as evident from only 6.77% growth in gross direct tax collection in the April-June period against the 15% target for the year.
With India Inc facing difficult times, the growth in corporate tax was a meagre 3.48% in the first quarter of the current fiscal, as per the official figures released today.
The gross tax collections for the quarter were over Rs 1.11 lakh crore as against over Rs 1.04 lakh crore in the year-ago period.
However, the collections on account of personal income tax during the three months grew by 13% to Rs 40,520 crore. It was Rs 35,858 crore in April-June, 2011.
These figures indicate that the corporates would post subdued growth in profits. The companies will start posting their first quarter results later this week.
Industrial production grew by a mere 0.1% in April year-on-year, with 10 of the 22 segments posting negative growth.
Corporate and personal income taxes are the two major components of direct tax.
The gross mop-up of corporate taxes during the quarter stood at Rs 70,594 crore as against Rs 68,223 crore in the same period last fiscal.
The net direct tax collection, which is the gross collections less refunds, was also up 47.16% at Rs 84,273 crore in the June quarter of the current fiscal. It was Rs 57,267 crore in the year ago period.
The impressive increase in the net tax collections was mainly on account of lesser refunds compared to last year.
Wealth tax collection, which is also a part of direct tax, however, declined by 3.03% during the June quarter to Rs 32 crore. The collection was Rs 33 crore in the same period last year.