Increased Gross Direct Tax Collections by 6.6%. The national auditor’s data suggests that direct tax collections grew by a measly 6.6 per cent during April-July of the current financial year against the Budget target of 14.4 per cent for 2018-19, reported Business Standard.
Increased Gross Direct Tax Collections by 6.6%
Even as government pats itself on the back for 71 per cent surge in the number of income tax returns (ITRs) filed upto August 31 this year, the direct tax collection data released by CAG paints an uninspiring picture.
The numbers released by the Controller General of Accounts (CGA) on Friday revealed that direct tax collections grew by a meagre 6.6 per cent during April-July of the current financial year against the Budget target of 14.4 per cent for 2018-19. The growth was the lowest when compared with corresponding periods of the past three years.
Corporation taxes, in particular, disappointed the exchequer. These collections grew at just 0.57 per cent, the lowest in the first four months in at least seven years. Corporation taxes are budgeted to yield 10.15 per cent more revenues to the coffers at Rs 6,210 billion in FY2019 against Rs 5,637.45 billion in the previous year.
Personal income tax collections increased by 11.3 per cent in April-July period, also a three-year low in the first four months. Personal income tax is budgeted to grow 19.8 per cent at Rs 5,290 billion in FY19 compared to Rs 4,412.55 billion
“This (subdued direct tax collections) was probably due to higher refunds,” ICRA principal economist Aditi Nayar said.
Officials said the tax department refunds Rs 750 billion in the first four months of the current financial year, half of what was refunded in the entire FY18.
Corporate results were quite robust in the first quarter of 2018-19. For instance, aggregate sales of the listed companies grew 12 per cent, which was higher than the year-ago period.
In what could be a double whammy for this government, corporation tax collections grew at just 0.57 per cent, the lowest in the first four months in at least seven years. Corporation taxes are budgeted to rise 10.15 per cent to Rs 6,21,000 crore in this fiscal year against Rs 5,63,745 crore in the previous year.
The total number of e-returns of salaried individual taxpayers filed till August 31, 2018 increased to 3.37 crore from 2.19 crore returns filed during the corresponding period of 2017, registering an increase of 1.18 crore returns translating into a growth of almost 54 per cent, the Finance Ministry had said last week.