With the Indian economy growing at over nine per cent, led mainly by the services and manufacturing sectors, the tax administration has reason to cheer as direct tax collections were up 42 per cent in the first five months of the current fiscal.
India's net tax collections stood at Rs 610.30 billion (approx $15 billion) for April-August period, up 42 per cent over Rs 429.80 billion in the like period of last fiscal, official data showed on Thursday.
While corporate tax collection recorded a growth of 49.49 per cent at Rs 337.66 billion over Rs 225.87 billion last fiscal, the personal income tax grew 33.76 per cent to Rs 272.06 from Rs 203.40 billion during the period under review.
"During fiscal 2007-08, direct tax collections have consistently maintained a growth of over 40 per cent, reflecting continued buoyancy in the economy, better tax compliance and improved tax administration," an official statement said.
The growth in securities transaction tax was 35.16 per cent, while banking cash transaction tax was up 79.73 per cent.