Tax Collections Jump in India
July 10, 2012 Taxation in India
NEW DELHI – Tax collections in India are continuing to grow despite reduced economic expansion in the country and a drop in collections of wealth and securities taxes.
On July 9th the Central Board of Direct Taxes (CBDT) of India released a report on the collection of direct taxes over the April – June quarter, showing that the growth of tax collections has slowed down since last year but is still positive.
According to the Centre, the slowdown of industrial expansion and economic activity in India is being reflected in the collection of taxes, but overall tax revenues are still buoyant due to a tightening of the rules for tax refunds.
Gross direct tax collections over the three months between April and June reached INR 1.1 trillion, growing by 6.7 percent compared to the same period in last year. However, net tax collections rose by 47.16 percent compared to the same period last year, as the Centre saw a 42.59 percent decline in tax refund payments over the quarter.
The Centre has already commented on the reduction in refund payments, saying that during the current fiscal year the total of refund payments will be well below the INR 950 billion of payments made over the course of the previous fiscal year.
The increased gross tax collections were attributed to a 3.48 percent rise in corporate taxes, and a 13 percent increase in the collection of personal income taxes. However, the report also showed that collections of wealth tax and securities transaction tax fell, with decreases of 3.03 percent and 0.52 percent respectively.
Photo by balusss