Indian Tax Revenues Grow 32%

by Lorys Charalambous, Tax-News.com, Cyprus

07 October 2008

Net direct tax collections during first six months of the current fiscal year registered growth of 32.54%, driven by strong increases in corporate and personal income tax revenues, the Indian government has announced.

According to the Ministry of Finance, total net tax collections in the six months to the end of September 2008 stood at INR1.47 trillion (USD30.5bn), up from INR1.11 trillion in the same period last year.

Growth in corporate taxes was 35.65% (INR952.8 billion compared to INR702.4 billion last year). Personal income tax (including fringe benefit tax, securities transaction tax and banking cash transaction tax), grew at 26.94% (INR517 billion compared to INR407 billion last year).

Growth in corporate tax deducted at source (TDS) remained above 52%, while personal income tax TDS grew at 28% despite tax relief given to individual taxpayers in the 2008 budget. Corporate TDS collections stood at INR308.1 billion by September 30, 2008, against INR202.1 billion during the first six months of last year. Personal income tax TDS stood at INR332.7 billion as against INR260 billion in the same period last year.

Self-assessment tax paid by both corporate and non-corporate taxpayers, voluntarily before filing their tax returns, registered substantial growth of 111% and 71%, respectively.

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