Union government in the Month of March 2013 announced that it has met its revised tax collection target for 2012-13.
With this there is also possibility that the tax collection may even exceed the estimates because of better-than-expected indirect tax collections.
Combining (direct and indirect tax collections) the government met the revised estimates. From the revenue side a bit for fiscal consolidation was done. However the final numbers for direct taxes will be known only after 20 April 2013.
For the year 2012-13, the Union government had revised its direct tax collections target to 5.65 lakh crore Rupees from budget estimates of 5.70 lakh crore Rupees.
The target for indirect taxes was revised to 4.69 lakh crore rupees from budget estimates of 5.05 lakh crore Rupees.
It is also important here to note that the fiscal deficit target for 2012-13 of 5.2% of the gross domestic product (GDP) has also been achieved. For 2013-14, budget estimates for direct taxes and indirect taxes are 6.68 lakh crore Rupees and 5.65 lakh crore Rupees, respectively.
The number of tax returns filed in 2012-13 was estimated around 2.15 crore compared to 1.64 crore a year ago. On 31March 2013 as many as 7.5 lakh tax returns were filed.
The government was trying its best to implement the Goods and Services Tax (GST) as early as possible.
What is Direct tax?
Direct tax is a tax paid directly to the government by the persons on whom it is imposed. Direct taxes mainly comprise of corporate tax and income tax. It is imposed upon an individual person (juristic or natural) or on property, as distinct from a tax imposed upon a transaction.
What is Indirect tax?
An indirect tax can be referred to taxes such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST). It is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer).