Direct tax collection up by 40.55 pc during Apr-Oct

Corporation tax posted a 36.63 per cent growth at Rs.14,255 crore while income tax was up by 43.70 per cent to Rs. 14,894 crore during the first seven months.

With direct taxes going up by 40.55 per cent, thegovernment is confident of achieving a growth target of 28-29 per cent in direct taxes by mopping up Rs. 72,000 crore by the end of this fiscal, Central Board of Direct Taxes chairman A Balasubramanian told reporters after signing the Double Taxation treaty with Ireland here today.

He said the advance tax collection has gone up 10-15 percent in the last few months. It was slated to increase at a higher rate from the month of December, he added.

The tax compliance rate is also expected to increase thisyear with restructuring and computerisation exercise now under way in the department, Balasubramanian said.

With better compliancy, the number of pending cases indirect taxes would also come down, he said.