Thursday, June 19, 2008

Higher TDS Collection Lifts Direct Tax Receipts 71% In April-May - June 19, 2008

The Center''s net direct mop up registered a 71.28 per cent rise during the first tow months of the current fiscal. The mop up went up during the period from Rs Rs 13,335 crore to Rs 22,840. This has been possible by higher tax deduction at source (TDS).

Personal income-tax (including fringe benefit tax, securities transaction tax and banking cash transaction tax) went up by 73.05 per cent in April-May 2008 to Rs 14,690 crore (Rs 8,489 crore). Corporate tax collections during the first two months of the current fiscal grew 68.05 per cent to Rs 8,126 crore (Rs 4,835 crore). The UPA Government''s strategy of moderate and stable direct tax rates has paid rich dividends in the last four years, especially in terms of better compliance. The tax payer base has gone up from 3.08 crore in 2004-05 to 3.27 crore in 2007-08. The high rates of economic growth have also helped and the revenue department is looking to raise about Rs 4 lakh crore from direct taxes this fiscal. The robust collection performance in April-May 2008 has come in the backdrop of Budget 2008-09 announcements on personal income-tax, when the threshold limit of exemption was hiked to Rs 1.5 lakh for all assessees.

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