No.402/92/2006-MC (40 of 2008)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated the 3rd September 2008
PRESS RELEASE
Net direct tax collections in the first five months in the present fiscal (up to August 2008)
stood at Rs.84,409 crore, up from Rs.61,030 crore, registering a growth of 38.31 percent.
Growth in Corporate Taxes was 43.49 percent (Rs.48,450 crore as against Rs.33,766 crore),
while Personal Income Tax (including FBT, STT and BCTT) grew at 31.79 percent (Rs.35,840
crore as against Rs.27,195 crore). Growth of Fringe Benefit Tax (FBT) was 31.85 percent
(Rs.1,339 crore against Rs.1,015 crore); Securities Transaction Tax (STT) was 15.10 percent
(Rs.2,730 crore against Rs.2,372 crore); and Banking Cash Transaction Tax (BCTT) was minus
21.36 percent (Rs.274 crore against Rs.348 crore).
Among regions, tax growth in Delhi and Mumbai was 76.23 percent and 32.49 percent,
respectively. Other regions with high tax growth are Nagpur (88.75 percent); Kochi (58.07
percent); Kolkata (56.82 percent); Bhubaneshwar (53.59 percent) and Bangaluru (48.87
percent).
Overall growth in tax deducted at source (TDS) was more than 40 percent but growth in
corporate TDS was 55.22 percent. Corporate TDS collections stood at Rs.26,445 crore as on 31st
August 2008 against Rs.17,037 crore during the corresponding period last year. This was also
the result of several TDS verifications / surveys carried out by the Income Tax department,
which led to detection of hundreds of crore of rupees not deducted or not paid to the government
account after deduction. Robust growth in direct taxes has been maintained despite substantially
higher relief to individual taxpayers announced by the Finance Minister in the Union Budget
2008. Therefore, higher growth in TDS collections indicates good health of the Indian economy
and indicates further improvement in tax administration and tax compliance levels.
The cost of direct tax collection, on the other hand, which had declined to an all-time low
of 0.54 percent during fiscal 2007-08, is likely to further decline to about 0.43 percent during the
current fiscal, the lowest among all large economies in the world.
Robust growth of over 35 percent in direct taxes during the past few years has helped the
central government in meeting FRBM targets, focus on developmental and social programmes,
and declare higher pay and allowances for its employees.
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated the 3rd September 2008
PRESS RELEASE
Net direct tax collections in the first five months in the present fiscal (up to August 2008)
stood at Rs.84,409 crore, up from Rs.61,030 crore, registering a growth of 38.31 percent.
Growth in Corporate Taxes was 43.49 percent (Rs.48,450 crore as against Rs.33,766 crore),
while Personal Income Tax (including FBT, STT and BCTT) grew at 31.79 percent (Rs.35,840
crore as against Rs.27,195 crore). Growth of Fringe Benefit Tax (FBT) was 31.85 percent
(Rs.1,339 crore against Rs.1,015 crore); Securities Transaction Tax (STT) was 15.10 percent
(Rs.2,730 crore against Rs.2,372 crore); and Banking Cash Transaction Tax (BCTT) was minus
21.36 percent (Rs.274 crore against Rs.348 crore).
Among regions, tax growth in Delhi and Mumbai was 76.23 percent and 32.49 percent,
respectively. Other regions with high tax growth are Nagpur (88.75 percent); Kochi (58.07
percent); Kolkata (56.82 percent); Bhubaneshwar (53.59 percent) and Bangaluru (48.87
percent).
Overall growth in tax deducted at source (TDS) was more than 40 percent but growth in
corporate TDS was 55.22 percent. Corporate TDS collections stood at Rs.26,445 crore as on 31st
August 2008 against Rs.17,037 crore during the corresponding period last year. This was also
the result of several TDS verifications / surveys carried out by the Income Tax department,
which led to detection of hundreds of crore of rupees not deducted or not paid to the government
account after deduction. Robust growth in direct taxes has been maintained despite substantially
higher relief to individual taxpayers announced by the Finance Minister in the Union Budget
2008. Therefore, higher growth in TDS collections indicates good health of the Indian economy
and indicates further improvement in tax administration and tax compliance levels.
The cost of direct tax collection, on the other hand, which had declined to an all-time low
of 0.54 percent during fiscal 2007-08, is likely to further decline to about 0.43 percent during the
current fiscal, the lowest among all large economies in the world.
Robust growth of over 35 percent in direct taxes during the past few years has helped the
central government in meeting FRBM targets, focus on developmental and social programmes,
and declare higher pay and allowances for its employees.
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