Direct tax collections grow 19.5% in Apr-Feb FY18

Centre's direct tax collections jumped 19.5% to 7.44 lakh crore in April-February period of the current fiscal backed by a strong pick up in corporate tax collections.

"The provisional figures of direct tax collections up to February, 2018 show that net collections are at Rs 7.44 lakh crore which is 19.5% higher than the net collections for the corresponding period of last year," the department of revenue data said.

The net direct tax collections represent 74.3% of the revised estimates of direct taxes for the financial year 2017-18 which stands at Rs 10.05 lakh crore.

Gross collections (before adjusting for refunds) have increased by 14.5% to Rs.8.83 lakh crore during April to February. Refunds amounting to Rs 1.39 lakh crore have been issued during the period, according to the data

The growth rate for net collections for corporate income tax (CIT) is 19.7% and for personal income tax (PIT) is 18.6%, it said.

According to Finance Minister Arun Jaitley formalisation of the unorganised sector on account of the demonetisation drive and various tax reforms will further improve the tax-to-GDP ratio. His Budget estimates had pegged direct tax collection growth at 15.7%.

If the direct tax collection keeps pace, it may come as an aid to the Centre struggling to rein in its fiscal deficit in the wake of lower Goods and Services Tax collections and lower non tax revenues.