Direct tax kitty rises 16%

The growth in direct tax collections marginally slowed down in September but with a 15.8% rise during the first half, it was just a shade ahead of the asking rate for the current financial year.
Latest data estimated collections at Rs.3.86 lakh crore in first half of the financial year, net of refunds, compared to corresponding period last year. Gross collections were 10% higher at Rs.4.66 crore, but the government issued refunds of around Rs.79,600 crore between April and September. Till August, net collections were 17.5% higher.

While there is a slowdown in economic activity, tax collections seem to be staying firm for the moment. At the end of September, the growth in advance tax collections was estimated at 11.5%, compared to 11.9% by June-end, the quarter in which growth moderated to a three-year low of 5.7%. Advance taxes are seen as an early indicator of economic activity.

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