No.402/92/2006-MC (04 of 2009)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi dated the 4th February 2009

PRESS RELEASE

Net direct tax collections during first ten months of the present fiscal (up to January 2009) stood at Rs.247,396 crore, up from Rs.218,538 crore, registering a growth of 13.21 percent. Growth in Corporate Taxes was 17.32 percent (Rs.157,039 crore as against Rs.133,851 crore), while Personal Income Tax (including FBT, STT and BCTT) grew at 6.71 percent (Rs.90,010 crore as against Rs.84,349 crore). Growth in Fringe Benefit Tax (FBT) was 19.13 percent (Rs.6,148 crore as against Rs.5,161 crore) and in Banking Cash Transaction Tax (BCTT) was 16.12 percent (Rs.534 crore as against Rs.460 crore). Securities Transaction Tax (STT), however, declined by 29.13 percent (Rs.4,815 crore as against 6,793 crore).

During this period, growth of tax deducted at source (TDS) for Corporate Taxes was 41.1 percent (Rs.50,252 crore against Rs.35,615 crore last year) and for PIT it was 20.6 percent (Rs.54,099 crore against Rs.44,870 crore last year).

In the month of January 2009, growth in direct tax collection stood at 34.29 percent compared to January 2008 as against a negative growth of 12.51 percent in the month of December 2008 compared to December 2007, and a negative growth of 36.09 percent in the month of November 2008 compared to November 2007.

Direct tax collections have so far reached 67.78 percent of the Budget Estimates target of Rs.3,65,000 crore.

Direct tax collections show year-on-year recovery with corporate tax and TDS growth, following prior monthly declines. Press release reports year-on-year increases in net direct tax collections for the first ten months through January 2009, with corporate tax and several levies up, Securities Transaction Tax down, substantial TDS growth for corporate and personal income taxes, month-to-month volatility with recovery in January, and collections at about two-thirds of the Budget Estimates target.