3:52 PM
Unknown
08 July 2011
Total tax collections in the first quarter of this fiscal rose 24 per cent to Rs 1,04,136 crore from Rs 84,041 crore in the corresponding year-ago period, belying claims of an economic slowdown.However, refunds increased 205 per cent during the April-June quarter to Rs 46,868 crore from Rs 15,366 crore in the year-ago period, resulting in a 17 per cent drop in net direct tax collection to Rs 57,268 crore from Rs 68,675 crore a year ago.Tax officials said the refunds would not affect overall collections and net tax targets would be met.According to officials, total corporate tax collection grew 23.49 per cent to Rs 68,223 crore from Rs 55,244 crore last year, whereas gross collection of personal income tax rose 24.63 per cent to Rs 35,859 crore from Rs 28,772 crore.
“Both set of figures seem to show that India continues to grow at a fast pace,” they said.Revenue officials said the government planned to clear all refunds at the earliest, and this had led to bunching.“Even older unpaid tax refunds are being cleared but with the kind of tax buoyancy that we are witnessing we are quite confident of meeting revenue targets,” officials said.Former revenue secretary Sunil Mitra had said a slowdown in the economy could hit tax growth.The Centre has targeted direct tax collections of Rs 5.3 lakh crore in 2011-12, about 19 per cent more than Rs 4.45 lakh crore in 2010-11.
Given the trend in the first quarter, analysts expect the Centre to meet its target even if the refund payout for the fiscal crosses Rs 1 lakh crore.