India’s Tax Take Increases

December 4, 2009 Taxation in India

The ManIndia’s Central Board of Direct Taxes (CBDT) announced on December 2nd that their net direct tax collections for the first eight month of the current fiscal year had risen by 3.71%, compared to the same period in the previous year.

In what the Indian Income Tax Department (ITD) labeled as “impressive growth,” the CBDT reported net tax collections of INR1,838 billion for the April up to November period, from INR1,776 billion in the equivalent period in the previous fiscal year. PIT collection, which includes Fringe Benefit Tax, Security Transaction Tax and Banking Cash Transaction Tax, totaled INR703 billion, compared to the previous year’s INR672 billion, making a rise of 4.53%. Corporate Taxes collected for the period increased by 3.17%, from INR1,097 billion to INR1,132 billion. Individually, the Securities Transaction Tax grew by 4.44% to INR43.5 billion.

Tax collection figures for November, when compared to the previous November, rose by a cumulative 0.28%. Corporate Tax collections in November 2009 fell by 29.5% to INR32.1 billion, from November 2008’s INR 45.6 billion. PIT receipts rose by 23.8% to INR71.6 billion from the previous INR 57.9 billion figure.

However, with only four months left in the current fiscal year, direct tax collection in India is well short of its INR 3,700 billion target.

Photo by Robert S. Donovan