As per available figures, net direct tax collection during the fiscal 2008-09 stands at Rs.338,212 crore, up from Rs.312,202 crore during 2007-08, registering a growth of 8.33 percent. Growth in Corporate Taxes was 10.84 percent (Rs.213,823 crore as against Rs.192,911 crore), while Personal Income Tax (including FBT, STT and BCTT) grew at 4.26 percent (Rs.123,967 crore as against Rs.118,904 crore). Growth in Fringe Benefit Tax (FBT) was 12.38 percent (Rs.7,997 crore as against Rs.7,116 crore). Securities Transaction Tax (STT), however, declined by 36.95 percent (Rs.5,408 crore as against Rs.8,577 crore).

Despite economic slow-down and substantial relief to non-corporate taxpayers, direct tax collections exceeded the previous year's collection by about Rs.26,000 crore; Corporate tax deducted at source (TDS) registered a growth of 35.4 percent (Rs.61,683 crore against Rs.45,450 crore last year); PIT TDS registered a growth of 16.3 percent (Rs.68,786 crore against Rs.59,145 crore last year); and Central Government TDS registered a growth of 65.39 percent (Rs.3,364 crore against Rs.2,034 crore last year). Taxes collected include an all time high additional tax amounting to Rs.31,242 crore collected out of tax demand raised by the Income Tax department. This amount consists of tax arrears of Rs.10,016 crore and current tax of Rs.21,226 crore.

Collection of direct taxes has more than tripled from Rs.1,05,088 crore in 2003-04 to Rs.3,38,212 crore in 2008-09 at an average annual growth of 26.75 percent against an average annual growth rate of 18.86 percent between 1990-91 to 2001-02. Direct tax as percentage of GDP stands at 6.23 percent, a marginal decline from 6.61 percent achieved during 2007-08. However, direct tax to GDP ratio has increased from 3.81 percent in 2003-04 to 6.23 percent in 2008-09 as compared to increase from 2.10 percent in 1990-91 to 3.03 percent in 2001-02, contributing over 55 percent of central tax revenues. The cost of collection, which increased to 0.66 percent during 2008-09 from 0.54 percent during 2007-08, still remains one of the lowest in the world.

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Direct tax collections rise despite slowdown, driven by corporate tax growth, stronger TDS and arrears recoveries, mixed securities tax. Net direct tax collections rose in 2008-09, driven by corporate tax growth, higher TDS across corporate and personal categories, and substantial additional tax recovered from demands comprising arrears and current tax; securities transaction tax declined while the direct tax to GDP ratio increased compared with earlier years and the cost of collection edged up but remains low internationally.