Direct tax collection rises 7%

Trailing by Rs 1.15 lakh cr

Led by a better year-on-year growth in personal income tax collection, the gross domestic tax collection in the ten months to January rose 7.02 per cent to Rs 4.55 lakh crore, but with less than two months for the fiscal year to end, achieving the target of Rs 5.7 lakh crore may be remote.

The gross collections of personal income tax increased 13.81 per cent to Rs.1,57,913 crore in April-January period this fiscal as compared to Rs.1,38,746 crore in the corresponding period of 2011-12.

However, collections from corporate taxes have been sluggish.

The gross collections of corporate taxes increased 3.71 per cent to Rs 2,96,451 crore in the period under review as compared to Rs 2,85,837 crore in the previous year, according to data released here by the finance ministry Wednesday.

 Analysts said the overall slowdown in the economy has its impact on tax revenue generation.

The collections from wealth tax increased 2.85 per cent to Rs 685 crore, while  Securities Transaction Tax collection dropped by 9.99 per cent to Rs.3,731 crore in the first 10 months of the current financial year.

 The net collections from direct taxes increased 12.49 per cent to Rs 3,90,310 crore during the period under review. The difference in net and gross tax collections was due to tax refunds.

Despite slowdown in economic activities, the government had said it was making efforts to meet the Rs 5.7 lakh-crore direct tax target this year. Direct taxes include income tax, corporate tax and wealth tax.

The government has also warned evaders of excise, customs and service tax to pay their dues or face penal action which could include arrest, prosecution and property attachment.