Skip to main content

Direct tax receipts soar 17.5% in April-August

By
Direct tax receipts soar 17.5% in April-August
Collections at Rs 2.24 lakh crore higher than government estimates

Direct taxes fetched 17.5 per cent higher receipts to the exchequer for the first five months (April-August) of the current financial year (FY18), more than what was projected for the entire financial year. However, the growth rate slowed in August.

Direct tax collections, net of refunds, stood at Rs 2.24 lakh crore during the April-August period of FY18.

The receipts had grown 19.1 per cent in the first four months of FY18.

The government had projected 9.8 lakh crore from the direct taxes — corporation tax and personal income tax — in 2017-18, which would be 15.7 per cent higher than Rs 8.47 lakh crore in FY17. Till August, 22.9 per cent of the target has been achieved.

After adjusting for refunds, the growth in corporation collections was at 18.1 per cent during the period, while personal income tax collections rose 16.5 per cent.

Before refunds, corporation tax collections were up five per cent, while personal income tax receipts went up 16 per cent, highlighting corporates are still struggling to recover, even as net collections are robust due to refunds.

A total of Rs 74,089 crore refunds were given by the government in this period.

The direct tax kitty is crucial to the government since the goods and services tax (GST) collections net of refunds dwindled in July, the first month of its roll-out. For close to Rs 95,000-crore revenue collected so far for July, around Rs 62,000 crore has been claimed as input tax credit for taxes paid for the period before July 1. The remaining amount will be distributed between the Centre and the states.

The indirect tax collection figures for the month of August is yet to come. The numbers are significant for the government since the Centre’s fiscal deficit has already crossed 92 per cent of the Budget target in just four months.

The Business Standard, New Delhi, 12th September 2017

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more