Direct tax collections reach 39% despite slowdown fears
Despite the fear of economic slowdown as a result of continuous rise in the crude oil prices, the net direct tax collections increased by 38.61 per cent in the first quarter.
According to a statement released by the Finance Ministry, the growth in direct tax collections in Nagpur and Kochi witnessed as high as 74.08 % and 68.98% respectively, in the direct tax collection, whereas, it was less than 50% in cities like Mumbai, Bangalore and Kolkata. In the capital city Delhi, the direct tax collection increased to 53.57%.
A 50 % growth in tax deducted or collected at source (TDS/TCS) could be seen with an improvisation in tax conformity as well as in the administration of the tax. On the other hand, there was a 35% growth to see, so far as self-assessment tax is concerned.
However, in order to achieve the target of Rs 3,95,000 crore, as per the income tax department, a 25% growth in the net direct tax collection is required.
