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India’s net direct tax mop-up shoots by whopping 172.64% in April-May

14 Jun 2012 Evaluate

India’s net collection of direct taxes in the first two months of the current fiscal year 2012-13 shot by whopping 172.64 percent to Rs 35,323 crore from Rs 12,956 crore in the April-May a year ago, a data released by Finance Ministry opined. The primary factor behind the significant rise in net direct tax collection was decline in refunds by 54.85 percent as compared to year ago period. The refunds plunged substantially to Rs 16,900 crore in April-May 2012 as against Rs 95,000 crore in the corresponding period of last financial year.

However, the finance ministry statement also underscored that the gross collection of direct taxes stood at Rs 52,232 core, registering a growth of 3.62 percent when compared to the gross realization of Rs 50,407 crore in April and May 2011. Besides, the government’s gross corporate tax collection showed a fall of 2.82 percent during the two months of the FY 2012-13 to Rs 24,329 crore as against Rs 25,035 crore in the same period in FY 2011-12. The finance ministry has set a direct tax collection target of Rs 5.7 lakh crore for the current fiscal, which is about 15.2 percent more than the actual collection of Rs 4.95 lakh crore in the previous fiscal.

The Ministry further revealed that gross mop-up of personal income went up to Rs 27,884 crore from Rs 25,344 crore showing a growth of 10.02 percent. Moreover, the government’s wealth tax collection showed a de-growth of 16.67 percent during April-May of the FY 2012-13 and stood at Rs 15 crore as against Rs 18 crore in the same period in FY 2011-12. However, realization from Securities Transaction Tax increased by 7.36 percent to Rs 540 crore from Rs 503 crore in the same period last fiscal.

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