Despite a prolonged economic slowdown, the Centres net direct tax receipts till December 20 this financial year rose 13.7% from a year ago to R4.12 lakh crore, data released by the government showed on Saturday. The growth rate, however, lags behind the ambitious 18% projection made in the Budget FY14 by finance minister P Chidambaram.
The revenue department said net corporate tax receipts up to December 20 this year rose 10.2% to R2.6 lakh crore, while net personal income tax receipts rose 20.5%to R1.47 lakh crore, compared with the year-ago period. Securities transaction tax and wealth tax stood at R3,427 crore and R752 crore, respectively.
Of the total direct tax receipts, contribution by way of advance tax up to the December quarter was R2.02 lakh crore, showing 8.8% growth. Advance corporate tax collection rose 8.4% to R1.76 lakh crore. The department said this is better than the 7% growth rate seen in the same period last year.
Tax receipts in the December quarter were expected to be muted going by the adverse trends in the economy, reflected in the 1.8% contraction in industrial production in October.
Field officials in the income tax department said advance tax receipts were a mixed bag. Depreciation of rupee helped information technology firms and generic pharmaceutical companies in the December quarter, adding to their export revenue. Businesses having foreign loans, however, suffered due to a weaker rupee. Public sector banks generally did not do well during the quarter, said an official, requesting not to be named.
Advance personal income tax receipts rose 11.9% to R25,686 crore during the December quarter from a year ago. The next installment of advance tax is due on March 15.