Net direct tax collections during first four months of the present fiscal (up to July 2009) stood at Rs.73,990 crore, up from Rs.71,648 crore in the same period last fiscal, registering a growth of 3.27 percent. Growth in Corporate Taxes was 2.61 percent (Rs.42,685 crore as against Rs.41,598 crore), while Personal Income Tax (including STT, FBT and residual BCTT) grew at 4.33 percent (Rs.31,279 crore as against Rs.29,982 crore). Lower growth in net collection was mainly on account of higher tax refund outgo of 53.36 percent at Rs.20,768 crore as against Rs.13,542 crore last fiscal.

Net collections during the month of July 2009 remained positive at Rs.14,525 crore compared to Rs.14,275 crore during July 2008; while Securities Transaction Tax (STT) recovered to grow by 3.55 percent during April-July 2009 (Rs.2,240 crore as against Rs.2,164 crore) compared to the corresponding period last fiscal. Direct tax collections show modest growth while higher tax refunds dampen net revenue gains in early fiscal months. Direct tax receipts showed modest year-on-year growth in the first four months of the fiscal, with Corporate Tax rising more slowly than Personal Income Tax and Securities Transaction Tax recovering; a marked increase in tax refund outgo materially constrained net collection growth and reduced net cash inflows despite positive monthly net receipts for July.