Direct tax collection for the April-February period grew 19.5 per cent to Rs 7.44 lakh crore, compared with the required 18.3 per cent growth for the current financial year to meet the revised estimate target of Rs 10.05 lakh crore.
Collections for corporate and personal income tax for the period rose 19.7 per cent and 18.6 per cent, respectively, the government said in a statement.
Experts attributed the collection growth to formalisation of the economy as a result of demonetisation and the roll-out of the goods and services tax (GST).
The government had revised upwards the direct tax collection target from Rs 8.5 lakh crore in the Budget. The government said that refunds amounting to Rs 1.39 lakh crore have been issued during this period.
While the collection growth averaged over 19 per cent in the April-July period, it had slowed down in the subsequent months to just over 14 per cent in April-November period. The growth picked up again from December to over 18 per cent. The widening of the tax base was a result of direct tax reforms, including demonetisation, he said.
Meanwhile, Economic Affairs Secretary Subhash Chandra Garg said on Thursday that the 7.2 per cent expansion in the economy during the October-December quarter has put the country in one of the highest growth bracket in the world and recovery will continue to be sharp going ahead.
The third quarter growth of 7.2 per cent was highest in five quarters. The previous high was recorded at 7.5 per cent in the July-September quarter of 2016-17. —FE & PTI