Tax Collections Will Save The Day

There is a new supporter for the government in its quest to tame the ever increasing current account deficit (CAD). A robust tax collection during April-October period will help to some extent in taking off the pressure from it. During these seven months the Gross Direct Tax collection stood at Rs 3.38 lakh crore as against Rs 3.03 lakh crore achieved during the same period last year. This is a good 11.58 per cent growth. More importantly, as per budget estimates, the target of direct tax collection is Rs 6.68 lakh crore for financial year 2013-14. The government has been taking whatever steps necessary to ensure that the target is achieved as it goes a long way in bringing down the CAD too. The finance ministry sent notices to various wilful tax evaders in last four months as a part of this process.

As per information filed by CBDT (Central Board of Direct Taxes) the biggest respite came in terms of corporate tax collection, which grew by 8.23% to Rs 2.10 lakh crore as against Rs 1.94 lakh crore during the corresponding period last year. Gross collection of personal income tax also registered a growth of a whopping 17.89 per cent to Rs 1.25 lakh crore, clearly showing the results of the efforts taken by the Finance Minister to increase collection from this segment. On the net direct tax front, there was a growth of 13.33 per cent to Rs 2.84 lakh crore from Rs 2.51 lakh crore during the same period last year.

Collection of Securities Transaction Tax (STT) also went up by 5.67 per cent to Rs 2645 crore, clearly showing a revival of mood in the capital markets. Wealth tax collection went up by 5.86 per cent to Rs 560 crore.