Direct Tax Collection Rises 16% In April-November
The government’s direct tax collection rose 16 percent year-on-year in the April-November period.
The gross direct tax collection during the period stood at Rs 6.75 lakh crore, according to a Finance Ministry statement. The net direct tax collection rose 14.7 percent from the year-ago period to Rs 5.51 lakh crore, representing 48 percent of the total budget estimates of direct tax for 2018-19 of Rs 11.50 lakh crore.
This came despite a high base on account of collections from the Income Declaration Scheme, the ministry said. That was a one-time amnesty scheme to disclose black money held by citizens and pay a higher rate of tax on the income disclosed. The government had received Rs 10,833 crore in the last instalment of tax paid on account of the scheme.
As the present collection represents 48 percent of the budget estimate, it may be possible that the government will be able to meet the direct tax collection target, said Sanjay Kumar, senior director at Deloitte India. “With some efforts by the tax authorities to collect the arrears, the government may exceed its target.”
The December tax collection figures are crucial as the basic assumption is that during the October-December quarter, the government would receive 30 percent of the budgeted amount, Kumar said.
Tax refunds rose 20.8 percent over last year to Rs 1.23 lakh crore in the April-November 2018 period. Net corporate income tax grew 18.4 percent and personal income tax collections increased 16 percent year-on-year during the reporting period.