The country's direct tax collection has reported an increase of 20 per cent in the current fiscal year and stood at Rs335,000 crore, Finance Minister Pranab Mukherjee said Saturday.
“Direct tax collections have registered a growth of 20 per cent during the current year so far, and have reached nearly Rs335,000 crore,” Mukherjee said at a function here to commemorate 150 years of income tax collection in the country.
According to him, the increase in direct tax collection was due to simplifying of norms, coupled with improvements in tax administration.
“Direct tax collections have grown at an average annual rate of 24 per cent in the last five years and has nearly trebled from Rs132,771 crore in financial year 2004-05 to about Rs378,000 crore in financial year 2009-10,” he said.
He said the share of direct taxes in the GDP (gross domestic product) of the country has increased from 4.1 per cent to 6.1 per cent.
Mukherjee was at the function to release new coins worth Rs150 and Rs5 marking the completion of a year-long celebration of 150 years of income tax collection in the country.
The precursor to the modern income tax law in the country was first introduced in 1860 for collection of duties on profits arising from property, professions, trade and offices.