Reflecting distinct signs of recovery in the economy, advanced corporate and personal Income Tax collections have posted positive growth rate of 13.10 per cent in the second quarter of current fiscal (July-September) 2009-10 compared to negative growth of nearly six per cent in the first quarter.
With the economy witnessing early signs of recovery through upturn in key economic indicators like growth rate of Index of Industrial Production in June and July this year, as a spin off effect, total collection of corporate tax and personal Income Tax surged to Rs 49,502 crore in the second quarter as against Rs 20,728 crore in the first quarter of the current fiscal. Corporate tax and personal Income Tax grew by 14.7 per cent and 1.7 per cent respectively in the second quarter ending September 15, 2009, against the negative growth of 3.7 per cent and a drastic fall of 44 per cent in the first quarter, provisional data compiled by the Finance Ministry show. Advanced corporate tax for second quarter stood at Rs 44,010 crore against Rs 38,367 crore in the corresponding period of previous fiscal. In first quarter ending June 15, 2009, it was Rs 20,728 crore as against Rs 21,515 crore in the corresponding period of the previous fiscal.
Similarly, advanced personal Income Tax collection stood at Rs 5,492 crore in the second quarter compared to Rs 5,398 crore in the corresponding period of the previous fiscal 2008-09. In the first quarter, it stood at Rs 725 crore compared to Rs 1,296 crore in the corresponding quarter of the previous fiscal.
State Bank of India (SBI) has emerged as largest tax payer followed by ONGC during the second quarter of the current fiscal. Tax figures shows companies manufacturing consumer durables have paid more taxes thereby reflecting sign of recovery in key segment of the economy. This upsurge in collection of direct taxes from companies dealing with consumer durables also shows revival in the demand cycle, which in turn will boost the overall economic growth rate.
Meanwhile, finance minister Pranab Mukherjee is said to meet the industry chambers to discuss issues arising out of the proposed new direct tax regime on October 9.
