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Direct Tax Grows [Only] 3.69% in H1 2010

ET: Direct tax kitty grows 3.69%

The Centre has collected 3.10 per cent more in direct taxes in September at Rs 64,737 compared to the same period last year.

With this, the mop-up from direct taxes for the first half of the fiscal has touched Rs 1,52,625 crore, an increase of 3.69 per cent over the corresponding period a year ago.

The growth in government’s corporate tax kitty for the fist half of this fiscal was more pronounced at 5.55 per cent over last year’s. In the first six months, Rs 1,00,572 was collected in corporate taxes compared to Rs 95,283 crore last year, the Central Board of Direct taxes in a statement

However, Personal Income Tax collection for the first half at Rs 51,897 crore saw only a marginal rise of 0.38 per cent over last fiscal. The figures include Securities Transaction Tax and residual Fringe Benefit Tax and Banking Cash Transaction Tax.

Isn’t 3.7% growth in tax collections slightly low for an economy that’s supposed to grow at 8%? Agri growth won’t be great, what with the drought and all, so corporates should make up, one thinks.

  • Anonymous says:

    >Yes but Indian Money in Swiss Accounts are not taxed. Even if the interest is taxed the Income tax Kitty will balloon.

  • Siddharth says:

    >Anon:
    I doubt right wing parties will be happy with that.
    Though I always think if leftist politicians have black money stacked in hongkong or China/Cuba?

  • Anonymous says:

    >I was working in China and I heard from Technical Sales Rep. of Leading European Equipment Maker that to sell stuff in China you will have to make arrangements. The CCP local bosses use this money deposited in Hong Kong, Singapore for their private use. As a matter of fact if you are a trusted Rep. then they will tell you to jack up your quotation.

    Great Service by CCP.

    Anon

  • FinWin says:

    >I guess we should see it in the light of the fact what was the base last year?

    Besides lot of companies did have hard time to coup up with loss in dollar terms. Besides most of the companies had frozen or cut salary levels hence lower direct taxes. Plus uncertain monsoons this season has held on spend on consumer goods. Unfortunately we had seen cut of around 20% in mid management and on lower grade it was anywhere between 3-10% in IT industry itself.

    Hopefully with stabilization and probable increase in salaries from September end onwards with have +ve impact on consumer spends. Hopefully worst is behind us 🙂 touch wood