India’s Direct Tax Collections registered 47.16 per cent Increase in April-June 2012

At 84273 crore rupees India’s direct tax collections registered a 47.16 per cent increase in the first quarter of the fiscal year 2012-13. On a cumulative basis, direct tax collections in the first quarter (April-June) swelled 6.77 per cent at 111182 crore rupees. This growth is, however, much lower than the 23.91 per cent growth witnessed in the same quarter of fiscal year 2011-12.

The rise in direct tax collections is vital as the country had recorded a 17 per cent decline in direct tax collection during the corresponding period of fiscal year 2011-12.

The poor show of manufacturing sector over the past few months widely reflected in corporate tax collection, as its growth pegged at a meagre 3.48 per cent in the first quarter of fiscal year 2012-13. Personal taxes went up by 13 percent. Corporate and personal tax had witnessed 23.49 per cent and 24.63 per cent growth, respectively, during the corresponding period of fiscal year 2011-12.

Securities transaction tax (tax on stock exchange trades), slumped 0.52 per cent to 952 crore rupees, while wealth tax revenues dropped 3.03 per cent in April-June to 32 crore rupees.

The sluggish economic environment in the country is making it all more difficult for the government to meet its targets. The Union Government pegged direct tax collection  target at 5.70 lakh crore rupees this fiscal, which is 15 percent higher than its total collection in fiscal year 2011-12.