No. 402/92/2006-MC (02 of 2008)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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New Delhi dated the 11^th January 2008

PRESS RELEASE 

Direct tax collections continued to record a growth of over 40 percent for the first nine months of the current fiscal. Net tax collections stood at Rs.2,06,029 crore, up from Rs.1,44,286 crore during the same period last fiscal, registering a growth of 42.79 percent and achieving over 77 percent of budgeted direct tax target of Rs.2,67,490 crore. Corporate Tax registered a growth of 38.64 percent at Rs.1,28,194 crore, up from Rs.92,463 crore during the previous fiscal, while Personal Income Tax (including FBT, STT and BCTT) grew by 50.36 percent at Rs.77,535 crore, up from Rs.51,565 crore. Growth in Securities Transaction Tax (STT) was 82.81 percent (Rs.5,897 crore against Rs.3,266 crore) and Fringe Benefit Tax (FBT) was 69.04 percent (Rs.4,958 crore against Rs.2,933 crore). Banking Cash Transaction Tax (BCTT) grew by 14.90 percent (Rs.411 crore against Rs.357 crore).

Overall direct tax growth was highest in the Mumbai region at 67.38 percent; followed by Pune region at 55.15 percent, North Western region (Chandigarh) at 49.02 percent, North Eastern region (Guwahati) at 47.84 percent and eastern Uttar Pradesh (Lucknow) at 47.51 percent.

Corporate tax growth was highest in the North-Eastern region (Guwahati) at 334.48 percent; followed by eastern Uttar Pradesh (Lucknow) at 75.92 percent, Mumbai at 73.70 percent, Kerala (Kochi) at 71.55 percent and Pune region at 48.90 percent.

Personal income tax growth was highest in Madhya Pradesh & Chhattisgarh region (Bhopal) at 456.27 percent; followed by Nagpur region at 96.09 percent, Pune region at 60.15 percent, Gujarat (Ahmedabad) at 59.32 percent and Mumbai at 55.54 percent.

Tax deduction / collection at source increased by over 50 percent while self-assessment tax (unpaid taxes paid voluntarily before submission of tax return) increased by over 59 percent, indicating continued improvement in tax administration and tax compliance levels.  

Direct tax growth boosted by corporate and personal tax increases, reflecting stronger collection and improved compliance. Direct tax collections rose substantially in the first nine months, with corporate tax and personal income tax contributing materially and transactional levies also expanding, resulting in net collections reaching a substantial portion of the budgeted direct tax target. Regional data showed pronounced year-on-year growth in several metropolitan and regional centres, and administrative indicators-tax deduction/collection at source and voluntary self-assessment payments-increased markedly, indicating improved tax administration and higher taxpayer compliance.