Direct Tax Collection Up 40% In India

by Lorys Charalambous, Tax-News.com, Cyprus

11 February 2008

The Indian government revealed last week that direct tax collection recorded growth of over 40% for the first ten months of the current fiscal year.

Net direct tax collections stood at Rs.2,180bn, up from Rs.1,550bn during the same period last fiscal, registering a growth of 40.47%, and achieving over 81% of the budgeted direct tax target of Rs.2,670bn.

The authorities went on to announce that corporate tax collection registered growth of 37.54% at Rs.1,338bn, up from Rs.973bn during the previous fiscal, while personal income tax collection (including fringe benefit tax, securities transaction tax and banking cash transaction tax) grew by 45.45% at Rs.843bn, up from Rs.579bn.

Growth in securities transaction tax was reported to be 85.71% (Rs.67bn against Rs.36bn) and fringe benefit tax was 30.74% (Rs.51bn against Rs.39bn). Banking cash transaction tax grew by 14.51% (Rs.4,6bn against Rs.4bn).

The government further revealed that:

"Overall direct tax growth was highest in the Mumbai region at 64.26%; followed by North Western region (Chandigarh) at 48.19%, Pune region at 44.37%, Karnataka & Goa regions (Bangalore) at 43.76% and Andhra Pradesh region (Hyderabad) at 39.53%."

"Corporate tax growth was highest in the North-Eastern region (Guwahati) at 254.30%; followed by Bihar & Jharkhand regions (Patna) at 75.45%, Kerala region (Kochi) at 71.61%, eastern Uttar Pradesh (Lucknow) at 71.46% and Mumbai at 69.90%."

"Personal income tax growth was highest in Madhya Pradesh & Chhattisgarh regions (Bhopal) at 393.07%; followed by Mumbai at 54.48%, part of western Uttar Pradesh region (Meerut) at 52.91%, Andhra Pradesh region (Hyderabad) at 49.97%, eastern Uttar Pradesh (Lucknow) at 48.84% and Tamil Nadu region (Chennai) at 48.41%."

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