Direct tax collections surge 71% yoy

Net direct tax collections in the first two months of the present fiscal year (April-May 2008-09) stood at Rs.2.29bn as against Rs.1.33bn, registering a growth of 71.28%. Growth in Corporate Taxes was 68.05% (Rs.812mn crore as against Rs.483mn), while Personal Income Tax (including FBT, STT and BCTT) grew at 73.05% (Rs.1.47bn as against Rs.848mn). Tax deducted at source (TDS) continued to grow this fiscal at about 51%, i.e. the same level as in the last fiscal. The robust growth in direct taxes has been achieved despite larger refund payouts at Rs.901mn in the first two months of this fiscal as against Rs.503mn during the first two months of last fiscal. In spite of manpower shortage, refunds were issued to over 4.8mn taxpayers last fiscal (2007-08) compared to about 4.45mn refunds in the previous fiscal (2006-07). It is the endeavour of the Income Tax department to provide better taxpayer services, particularly in the area of issuance of refunds.