India’s gross direct tax collection grew by 15 percent to Rs 3.46 lakh crore during April-September FY15 against Rs 3.01 lakh crore collected during the same period last year. The Finance Ministry has fixed gross direct tax collection target of Rs 7,36,221 crore for FY15, which is around 15 percent higher than the last fiscal's revised estimates. However, net direct tax collection has risen only 7.09 percent to Rs 2,68,836 crore in the first half of the current fiscal.
Gross corporate taxes collection increased by 15.31 percent to Rs 2,22,616 crore during April-September FY15, from Rs 1,93,054 crore in the year-ago period. Gross collection of Personal Income Tax, including STT and Wealth Tax, grew by 14.37 percent to Rs 1,23,528 crore in the first six months of the current fiscal, from Rs 1,08,009 crore in the same period of previous fiscal. Advance tax collections have shown a growth of 15.28 percent during the first half of current fiscal as against the growth of 7.66 percent shown at the same time previous year. Growth in Tax Deduction at Source (TDS) recorded at 9.47 percent in April-September of FY15 fiscal as against 14.22 percent in the same period last year.
Tax collection is the major source of revenue for the government. The government estimates to garner Rs 13.64 lakh crore from both direct and indirect tax collections during the FY15. In the previous fiscal year, tax collections fell short of target by a whopping Rs 77,000 crore as the government collected Rs 11.58 lakh crore against the budget estimate of Rs 12.35 lakh crore.