Net direct tax mop up at 8.36 in Apr-Dec

The new direct tax kitty stood at Rs 3,23,955 crore during the nine months period against Rs 2,98,957 crore in the same period of the previous fiscal.

Net direct tax collection grew at a meagre 8.36 per cent during April-December period of the current financial year,indicating that the revenue department would find it near impossible to meet the direct tax collection target for the year. The new direct tax kitty stood at Rs 3,23,955 crore during the nine months period against Rs 2,98,957 crore in the same period of the previous fiscal.

According to official figures released today,gross direct tax collection during the period was Rs 3,96,529 crore,up 14.54 per cent,against Rs 3,46,182 crore in the same period of the previous financial year.

The government had aimed at collecting Rs 5.32 lakh crore from direct taxes in Budget 2011-12.

However,the shortfall seems imminent because the economys outlook has worsened. The first indications of which was visible in the dismal advance tax collection in the third quarter of 2011-12. By the end of the third quarter,corporates would have paid 75 per cent of the full years advance tax.

In the third quarter,when India Inc pays 30 per cent of their estimated total tax liability,collections from the top 100 companies actually declined 1.4 per cent compared with the advance tax mop-up in the previous year.

The decline in the advance tax collection was not surprising since the industrial output decelerated 5.1 per cent in October.

Given the fact that the corporation tax accounts for almost 67 per cent of the total direct tax kitty,any decline in it has a significant bearing on the total revenue collection.

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During April-December period,gross corporate tax collection was up 12.49 per cent at Rs 2,69,850 crore as against Rs 2,39,883 crore last year.

The collection from personal income tax was up 19.06 per cent at Rs 1,25,998 crore as against Rs 1,05,831 crore in the previous financial year.

The collection from wealth tax was stood at Rs 646 crore,up 54.18 per cent as against Rs 419 crore in the last fiscal.

However,amid volatility in the stock market,the collection of securities transaction tax STT fell sharply by 26.48 per cent. STT stood at Rs 3,763 crore as against Rs 5,118 crore during the same period of the previous financial year.