Corporate tax declines but personal income tax swells in April-May
Gross collection of corporate taxes declined 2.82 percent during April-May while personal income tax rose 10.02 percent during April-May
The gross direct tax collection grew marginally by 3.62 percent to Rs 52,232 crore in the first two months of the current fiscal.
The gross realisation from direct tax in April and May 2011 was Rs 50,407 crore. Net direct tax collections, however, were significantally up at Rs 35,323 crore during April-May of 2012-13 from Rs 12,956 crore in the year-ago period, according to a Finance Ministry statement.
"This upward surge in net collections was due to declined in refunds by (-) 54.85 percent as compared to year ago period," the statement said.
The refunds was about Rs 16,900 crore in the two months, significantly lower than the refunds issued in corresponding period of last financial year. The refunds had totalled about Rs 95,000 crore in 2011-12.
For the current fiscal, the government has set a direct tax collection target of Rs 5.7 lakh crore, which is about 15.2 per cent more than the actual collection of Rs 4.95 lakh crore in the previous fiscal.
The Ministry further said gross mop-up of corporate taxes showed a decline of 2.82 percent during April-May of 2012-13 and totalled Rs 24,329 crore as against Rs 25,035 crore in the same period last fiscal.
On the other hand, gross collection of personal income tax during the months under review was up by 10.02 percent to Rs 27,884 crore from Rs 25,344 crore year-on-year.
Wealth Tax collection too declined by 16.67 per cent during April-May of 2012-13 to Rs 15 crore. The collection was Rs 18 crore in the same period last year.
However, realisation from Securities Transaction Tax increased by 7.36 per cent to Rs 540 crore from Rs 503 crore in the same period last fiscal.
Finance Minister Arun Jaitley has provided some relief to the individual tax payer who has been bearing the brunt of high inflation in the economy.<br />
The Housing Finance industry should be given infrastructure status.
Market participants said MFs have shown interest in the banking stocks during the past two months (September-October) primarily on account of measures announced by the new Reserve Bank Governor Raghuram Rajan coupled with overall surge in the stock market.<br /><br />