Net direct tax collections up 15.

5% in Q1

New Delhi, July 6

Buoyed by strong show on industrial growth front, the Centre's net direct tax

collections grew 15.49 per cent in the first quarter this fiscal to Rs 68,675 crore (Rs

59,465 crore). This growth is substantially higher than the 3.65 per cent year-on-

year growth seen in net direct tax collections in the first quarter of 2009-10.

Much of this growth performance could be attributed to the robust increase in

corporate tax payout for the quarter under review. For the April-June 2010 period,

corporate tax collections grew 21.65 per cent to Rs 43,439 crore (Rs 35,709 crore),

official data showed. Corporate tax collections grew 3.31 per cent in the first

quarter of 2009-10.
For the June 15 instalment in 2010, corporate advance tax stood at Rs 26,876 crore,

reflecting a 31.4 per cent increase over Rs 20,456 crore collected in the same

instalment last year. The 31.4 per cent growth is the highest since 2005, according

to an official release here. The corresponding growth in corporate advance tax

stood at -3.4 per cent, 25.1 per cent, 30 per cent and 26.9 per cent for FY 2008-09,

2007-08, 2006-07 and 2005-06, respectively.

Personal income-tax (including securities transaction tax or STT, and residual FBT

and BCTT) grew 1.24 per cent to Rs 24,075 crore (Rs 23,780 crore) during the first

quarter of 2010-11.

Meanwhile, STT collections nosedived to Rs 1,094 crore during April-June 2010,

reflecting a 25.21 per cent decline over Rs 1,462 crore collected in same period last

year. This steep fall in STT collections is being attributed to the decline in stock

market turnover for the period under review. STT collections had declined even in

the first quarter of last year to Rs 1,462 crore against Rs 1,623 crore in April-June

2008, reflecting a decline in value of trade in stock market.

In Budget 2010-11, the Government had pegged the direct taxes collection target

for the current fiscal at Rs 4.3 lakh crore. The Finance Minister, Mr Pranab

Mukherjee, recently said at an income-tax commissioners' conference that he

expects the Revenue Department to better this Budget Estimate, although the target

was not being formally revised upwards.

Direct tax collections increase 15.49 percent during first quarter

By ANI

July 6th, 2010

NEW DELHI - Net direct tax collections during first quarter of the present fiscal

year up to June 2010 stood at Rs.68, 675 crore, up from Rs.59, 465 crore in the

same period last fiscal, thereby registering a growth of 15.49 percent.

Growth in Corporate Taxes was 21.65 percent (Rs.43, 439 crore as against Rs.35,

709 crore), while Personal Income Tax (including STT, and residual FBT and

BCTT) grew at 1.24 percent (Rs.24, 075 crore as against Rs.23, 780 crore).

Corporate advance tax for the first quarter, at Rs.26, 876 crore in  Financial

Year 2010-11 against Rs.20, 456 crore in Financial Year2009-10, grew at 31.4

percent, fastest since 2005.

The corresponding growth in corporate advance tax stood at -3.4 percent, 25.1

percent, 30 percent and 26.9 percent for Financial Year 2008-09, 2007-08, 2006-07

and 2005-06, respectively.

Securities Transaction Tax, however, recorded a negative growth at 25.21 percent

during the first quarter (Rs.1, 094 crore in Financial Year 2010-11 as against Rs1,

462 crore in Financial Year 2009-10). (ANI)

Direct tax collection for April-June up by 15.49%

July 7th, 2010

The collection of direct taxes during the first quarter of the current fiscal increased

by over a full 15 per cent to Rs 68,675 crore, indicating higher corporate earnings.

The government has budgeted an overall tax mop-up of Rs 7.46 lakh crore during

this fiscal, out of which Rs 4.3 lakh are expected to be realised from direct taxes.

Realisation of direct taxes, which mainly include corporate tax and income tax,

went up to Rs 68,675 crore, as against Rs 59,465 crore in the same period last

fiscal.

According to the figures released by the Finance Ministry here, corporate tax

collection, which is a reflection on the performance of India Inc, soared 21.65 per

cent to Rs 43,439 crore during the reporting period and thus contributing to the

maximum during the reporting period.

But the realisation from personal income tax, securities transaction tax, banking

cash transactions tax etc grew marginally by only 1.24 per cent to Rs 24,075 crore

during the April-June period.

However, the realisation from the securities transaction tax declined to Rs 1,094

crore, from Rs 1,462 crore during the first quarter of previous fiscal.

As regards advance tax, the first quarter witnessed the highest increase of 31.4per

cent to Rs 26,876 crore, up from Rs 20,456 crore during the same period last fiscal.

While the advance tax collection dropped by 3.5 per cent during 2008-09, it

recorded an increase of 25.1 per cent in the previous fiscal. The increase in

advance tax collection was 30 per cent in 2006-07 and 26.9 percent in 2005-06.

The government expects to mop up Rs 4.3 lakh crore by way of direct taxes during

the current fiscal, an increase of over 13 per cent over the year-ago period.
Direct tax collection to rise substantially: CBDT chairman
Mumbai, July 10, PTI:

Direct tax collection in the country is likely to see a substantial increase after the

proposed Direct Taxes Code and Goods and Service Tax regimes come into

force, a top government official said on Saturday.

"We are moving towards a scenario where I think there will be a substantial

increase in collection of taxes. The Direct Tax Code (DTC) and Goods and Service

Tax (GST) will soon be put in place. The GST will help us in direct tax collection,"

Central Board of Direct Taxes (CBDT) chairman S S N Moorthy said here.

Once the GST is in place, all transactions would become transparent, Moorthy

said. He was speaking at a seminar on Tax Deduction at Source (TDS), organised

by the Indian Merchants' Chamber here today.

The direct tax collection for the June quarter was Rs 68,675 crore, and according to

estimations, it will rake in a total revenue of Rs 4.30 lakh crore during this fiscal.

The direct tax collection for 2009-10 was Rs 3.80 lakh crore.
However, Moorthy did not address issues such as recent changes in the draft DTC,

such as payment of minimum alternate tax against book profits instead of gross

assets and non-taxation of schemes such as provident fund, which may cause a loss

of revenue for the exchequer.

The CBDT chairman said that the debt crisis in the Eurozone was unlikely to affect

the domestic economy or impact tax collection.

"The symptoms are very good... as reported, the indirect tax collection has gone up

by 40 per cent, which shows that industry has picked up. I don't think Portugal or

Greece will leave any shadow on us," Moorthy said.

The CBDT chairman exuded confidence that the government would be able to

achieve the direct tax target of Rs 4.30 lakh crore for this fiscal.

"The target is quite stiff. We have to collect about Rs 4,30,000 crore after

surrendering about Rs 26,000 crore in the form of process streamlining and

reduction in TDS rates in the last budget," he said.

Direct tax collection rises 44%

TNN, Jan 6, 2010, 01.38am IST

NEW DELHI: Revenue collection is looking up with the corporate direct tax mop

up registering a 44% growth year-on-year in December 2009 and 14% in April-

December 2009 period. And the government is bullish on surpassing the direct tax

collection target of Rs 3.7 lakh crore by at least Rs 10,000 crore. 

Reflecting strong revival in the industrial growth, December witnessed a jump in

the corporate tax collection to Rs 53,293 crore as against Rs 37,002 crore in the

same period last in 2008-09. In the nine months up to December, corporate taxes

increased to Rs 1.66 lakh crore against Rs 1.46 lakh crore in the same period in

2008. 

The net direct tax collection during the first three quarters up to December 2009

stood at Rs 2.5 lakh crore, up from Rs 2.3 lakh crore in the same period last year,

showing a growth of 8.5%. In December, the net tax collection was Rs 66,410

crore compared to Rs 53,347 crore in the same month in 2008. The rise in tax

collection reflects a turnaround in the industrial output and consumption. 

However, the personal income tax (PIT) collection witnessed a negative growth. In
December, PIT declined by 19.7% to Rs 13,117 crore as against Rs 16,345 crore in

the same period last year. In the first nine months also, the PIT, which includes

securities transaction tax, fringe benefit tax and banking cash transaction tax,

declined by 0.4% to Rs 83,178 crore from Rs 83,524 crore in the corresponding

period last year. 

In 2009-10, the government had revised its budget estimate by increasing the direct

tax target to Rs 4 lakh crore. However, a lower growth rate of 3%-4% on an

average till November made it go back to the Budget estimate. 

Apart from the regular assessment, the Central Board of Direct Taxes (CBDT) is

hopeful of mopping up at least Rs 25,000 crore from scrutiny cases where

additional demands are raised after re-verification of returns. Last year, the

government had collected around Rs 30,000 crore from a similar exercise. 

Even the corporate advance tax in the third quarter had been very encouraging,

registering a growth of 42.6%, the highest for the entire fiscal. 

The advance direct tax payments received till December 15 reflected the economy

bouncing back with major corporates projecting the highest profitability for the
current fiscal belonging to banking, telecom, power, information technology (IT),

auto, oil and consumer goods.

Direct tax collections increase 15.49 percent during first quarter

By ANI 

New Delhi, July 6 (ANI): Net direct tax collections during first quarter of the

present fiscal year up to June 2010 stood at Rs.68, 675 crore, up from Rs.59, 465

crore in the same period last fiscal, thereby registering a growth of 15.49 percent.

Growth in Corporate Taxes was 21.65 percent (Rs.43, 439 crore as against Rs.35,

709 crore), while Personal Income Tax (including STT, and residual FBT and

BCTT) grew at 1.24 percent (Rs.24, 075 crore as against Rs.23, 780 crore).

Corporate advance tax for the first quarter, at Rs.26, 876 crore in Financial Year

2010-11 against Rs.20, 456 crore in Financial Year 2009-10, grew at 31.4 percent,

fastest since 2005.

The corresponding growth in corporate advance tax stood at -3.4 percent, 25.1

percent, 30 percent and 26.9 percent for Financial Year 2008-09, 2007-08, 2006-07

and 2005-06, respectively.

Securities Transaction Tax, however, recorded a negative growth at 25.21 percent

during the first quarter (Rs.1, 094 crore in Financial Year 2010-11 as against Rs1,

462 crore in Financial Year 2009-10). (ANI)

Direct tax collections increase 15.49 percent during first quarter

Wednesday - Jul 07, 2010, 10:47am (GMT+5.5)

[+] Text [-]

New Delhi (ANI): Net direct tax collections during first quarter of the present

fiscal year up to June 2010 stood at Rs.68, 675 crore, up from Rs.59, 465 crore in

the same period last fiscal, thereby registering a growth of 15.49 percent.

Growth in Corporate Taxes was 21.65 percent (Rs.43, 439 crore as against Rs.35,

709 crore), while Personal Income Tax (including STT, and residual FBT and

BCTT) grew at 1.24 percent (Rs.24, 075 crore as against Rs.23, 780 crore).

Corporate advance tax for the first quarter, at Rs.26, 876 crore in Financial Year

2010-11 against Rs.20, 456 crore in Financial Year 2009-10, grew at 31.4 percent,

fastest since 2005.

The corresponding growth in corporate advance tax stood at -3.4 percent, 25.1

percent, 30 percent and 26.9 percent for Financial Year 2008-09, 2007-08, 2006-07

and 2005-06, respectively.

Securities Transaction Tax, however, recorded a negative growth at 25.21 percent

during the first quarter (Rs.1, 094 crore in Financial Year 2010-11 as against Rs1,

462 crore in Financial Year 2009-10).

Direct Tax Collection for Q1 up Signaling Recovery and Optimism

Author: Meena Rani K

• Wednesday, July 07th, 2010

A finance ministry release yesterday disclosed tax collections

for the first quarter of the financial year. The direct tax collection went up by

15.49% to Rs 68,675 crore, compared to the same period last year.

This significant growth in tax collection was aided by corporate tax collection that

rose by 21.7% to Rs 43,439 crore. Most of the growth in corporate tax came from

advance tax payments made by corporate houses. The increase in advance tax paid

reveals the great expectations these corporates have for the current financial year.

The 31% increase in advance corporate tax for this quarter is the highest growth

recorded since 2005.

A marginal growth of 1.24% was recorded in the personal income tax collections,

which includes Securities Transaction Tax (STT), Banking Cash Transactions Tax

(BCTT) and residual Fringe Benefit Tax (FBT). STT collection was down by

25.21% from Rs 1,462 crore last year to Rs 1,094 crore this year.

The increase in corporate tax collection signals the rise in profits of the corporates,

which in turn confirms economic recovery. Moreover, with the country registering

a growth of 19.4% in the manufacturing sector, a significant industrial recovery is

also on the way.

The above-par growth in direct tax collection can be attributed partially to the base

effect. Last year, the tax collection was at an all-time low due to the staggering

effect of recession. For the first quarter last year, while the corporate tax collection

had grown by barely 3.3%, personal income tax collection had increased by 4.4%.
In the last budget, the finance minister had accounted for Rs 7.46 lakh crore tax

collection for the fiscal, with Rs 4.3 lakh crore coming from direct tax collection –

a 13% increase over last year’s collection. With the tax collection exceeding

expectations in the first quarter, the government can look forward to shrinking the

fiscal deficit gap even further.

Direct tax collections may double on tax code, GST: CBDT

Press Trust Of India / Mumbai July 11, 2010, 0:55 IST

Direct tax collections in the country are likely to double after the proposed Direct

Tax Code (DTC) and the Goods and Service Tax (GST) regime come into effect, a

top government official has said.

"We are moving towards a scenario where I think there will be a substantial

increase in collection of taxes when DTC and GST will be in place. GST will help

us in direct tax collection," Central Board of Direct Taxes (CBDT) Chairman S S

N Moorthy said.

Once GST was in place, all transactions would become transparent, he said, "I

think the direct tax collections may also double," while addressing a seminar on

Tax Deduction at Source (TDS) organised by the Indian Merchants' Chamber here

today.
Referring to the Eurozone crisis, he observed that the debt crisis in the Eurozone

was unlikely to have any effect on the domestic economy and would not impact tax

collections.

"The symptoms are very good...As reported, the indirect tax collection has gone up

by 40 per cent, which shows industry has picked up,” Moorthy said.

Direct tax collections increase 15.49 percent during first quarter

2010-07-06 20:40:00

Net direct tax collections during first quarter of the present fiscal year up to June

2010 stood at Rs.68, 675 crore, up from Rs.59, 465 crore in the same period last

fiscal, thereby registering a growth of 15.49 percent.

Growth in Corporate Taxes was 21.65 percent (Rs.43, 439 crore as against Rs.35,

709 crore), while Personal Income Tax (including STT, and residual FBT and

BCTT) grew at 1.24 percent (Rs.24, 075 crore as against Rs.23, 780 crore).
Corporate advance tax for the first quarter, at Rs.26, 876 crore in Financial Year

2010-11 against Rs.20, 456 crore in Financial Year 2009-10, grew at 31.4 percent,

fastest since 2005.

The corresponding growth in corporate advance tax stood at -3.4 percent, 25.1

percent, 30 percent and 26.9 percent for Financial Year 2008-09, 2007-08, 2006-07

and 2005-06, respectively.

Securities Transaction Tax, however, recorded a negative growth at 25.21 percent

during the first quarter (Rs.1, 094 crore in Financial Year 2010-11 as against Rs1,

462 crore in Financial Year 2009-10). (ANI)

Direct tax collections up 15.49 per cent in Q1; corporate tax mop up rises 21.65

per cent news

06 July 2010
Net direct tax collections during the first quarter of the current fiscal (April-June

2010) rose 15.49 per cent to Rs68,675 crore, from Rs59,465 crore in the same

period last fiscal.

Corporate tax collections rose 21.65 per cent year-over-year to Rs43,439 crore

from Rs35,709 crore, while personal income tax (including STT, and residual

FBT and BCTT) grew 1.24 per cent to Rs24,075 crore from Rs23,780 crore.
Corporate advance tax for the first quarter grew 31.4 per cent (the fastest since

2005) to Rs26,876 crore in the 2010-11 financial year from Rs20,456 crore in FY

2009-10. The corresponding growth in corporate advance tax stood at 3.4 per

cent, 25.1 per cent, 30 per cent and 26.9 per cent, respectively, for the 2008-09,

2007-08, 2006-07 and 2005-06 financial years.

Securities transaction tax, however, recorded a negative growth at 25.21 per cent

during the first quarter (Rs1,094 crore in FY 2010-11 as against Rs1,462 crore in

FY 2009-10).

Direct Tax

Direct tax is the tax which is charged directly on the tax payer. For e.g. property

tax and income tax. In other words direct tax is that tax that is deducted from one's

salary.

Direct Taxation in India 

Direct taxation in India is taken care by the Central Board of Direct Taxes

(CBDT); it is a division of Department of revenue under Ministry of Finance.

CBDT is governed by the revenue act 1963.CBDT is given the authority to create
and control direct taxes in India. The most important function of CBDT is to

manage direct tax law followed by Income Tax department.

In India the tax structure is divided amongst the central government and state

government. The central government levies taxes on income, custom duties, central

excise and service tax. While the state government levies tax like state excise,

stamp duty, VAT (Value Added Tax), land revenue and professional tax.

Local civic bodies levy tax on properties, octroi etc.

Capital gains tax, personal income tax, tax on corporate income and tax incentives

all come under the purview of direct tax.

Direct taxes are charged on the basis of residential status and not on the basis of

citizenship. The assessee are charged based upon the following factors

 Resident

 Resident but not ordinary resident.

 Nonresident.

Direct Taxes Before Reform

They had a major impact on economic policies, creation of savings and the trend of
investment. There was no proportion in terms of the impact of direct taxes on the

economy and there relative share in total tax revenues. The system of direct taxes

was very much complex and inefficient because of the combination of high

marginal rates of personal income and wealth taxation and high rates of corporate

profits. The corporate tax was pretty high. It leads to large scale evasion. Members

Of Parliament and Central Government Ministers get comparatively low salaries,

but they are given a sitting allowance which is not taxable. Ministers, MP's and

other high ranking government officials get government allocated accommodation,

where the charges are pretty less in comparison to the prevailing market rate.

Growth in Direct Tax collection during the Financial Year 2008-09 

Net direct tax collection during the fiscal 2008-09 stands at Rs.338, 212 crore, up

from Rs.312, 202 crore during 2007-08, registering a growth of 8.33 percent.

Growth in Corporate Taxes was 10.84 per cent, while Personal Income Tax

(including FBT, STT and BCTT) grew at 9.09%. Despite economic slow-down

and substantial relief to non-corporate taxpayers, direct tax collections exceeded

the previous year's collection by about Rs.26, 000 crore.

Growth In Direct Tax Collection During The Financial Year 2009-2010

The net direct tax collections grew by 5.77 per cent during the first two months of
the current fiscal (2009-2010).It was Rs 24,158 crore compared to Rs 22,840 crore

at the same time last year. Corporate tax grew at5.56 per cent (Rs 8578 crore

against Rs 8126 crore), while personal income tax (including FBT, STT and

BCTT) grew at 5.92 per cent (Rs 15,559 crore as against Rs 14,690 crore0.Overall

refund outgo during the period increased by 26.19 per cent (Rs 11,375 crore as

against Rs 9014 crore)while refunds to non corporate taxpayers grew by 61.7 per

cent (Rs 2,149 crore against Rs 1,329 crore).

Direct Tax collection may double on introduction of DTC, GST

10 Jul 2010, 1909 hrs IST,PTI

MUMBAI: Direct tax collection in the country is likely to double after the

proposed Direct Tax Code and the Goods and Service Tax regime come into

effect, a top government official said on Saturday. 

"We are moving towards a scenario, where I think there will be a substantial

increase in collection of taxes. The Direct Tax Code and Goods and Service Tax

will be in place. The GST will help us in Direct Tax collection," Central Board of

Direct Taxes (CBDT) Chairman, S S N Moorthy, said here. 

Once GST is in place, all transactions would become transparent, he said, adding,

"I think the direct tax collection may also double," Moorthy said while addressing

a seminar on Tax Deduction at Source (TDS) organised by the Indian Merchants'

Chamber here today. 

Referring to Eurozone crisis, he observed that the debt crisis in the Eurozone is

unlikely to have any effect on the domestic economy and would not impact tax

collection. 

"The symptoms are very good...as reported, the indirect tax collection has gone up

by 40 per cent, which shows that industry has picked up. I don't think Portugal or

Greece will leave any shadow on us," Moorthy said. 

The CBDT Chairman exuded confidence that the Government would be able to

achieve the direct tax target of Rs 4,30,000-crore for this fiscal. 

"The target is quite stiff. We have to collect about Rs 4,30,000 crore after

surrendering about Rs 26,000-crore in the form of process streamlining and

reduction in TDS rates in the last budget," he said.

Direct tax collections jump 15.5% in Q1FY11

Published on Tue, Jul 06, 2010 at 17:56   |  Updated at Wed, Jul 07, 2010 at 08:

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Indian economy has resurrected and managed to stay afloat from the poisonous

pangs of recession. Direct tax collection (DTC) in the first quarter of the current

fiscal has seen a growth, reports CNBC-TV18.

DTC has jumped 15.49% at Rs 68,675 crore in Q1FY11. During the same period,

corporate taxes registered a growth of 21.65% at Rs 43,439 crore. However

personal income tax was up by only a marginal 1.24% at Rs 26,876 crore.

Corporate Advance Tax which has been fastest since 2005 shot 31.4% at Rs 26,876

crore. Securities Transaction Tax was up 25.21% in Q1FY11.

Net direct tax collection up 15.49 percent in Q1

Wednesday - Jul 07, 2010, 09:04am (GMT+5.5)

New Delhi (IANS) The net direct tax collections for the first quarter of 2010 saw

an increase of 15.49 percent as compared to the same period last fiscal, an official
statement said Tuesday. 

The NDT stood at Rs.68,675 crore (up to June 2010), from Rs.59,465 crore in the

same period last fiscal. Growth in corporate taxes collection was also registered at

21.65 percent in the same period. It stood at Rs.43,439 crore as against Rs.35,709

crore during the same period last year, the finance ministry said.

Personal income tax grew at 1.24 percent in the first quarter to Rs.24,075 crore as

against Rs.23,780 crore.

Corporate advance tax also grew at 31.4 percent, fastest since 2005, at Rs.26,876

crore as against Rs.20,456 crore in financial year 2009-10.

Securities transaction tax, however, recorded a negative growth at 25.21 percent

during the first quarter at Rs.1,094 crore as against Rs.1,462 crore in the last

financial year.

Direct Tax Collections Increase 15.49% during First Quarter - Corporate

Taxes Register a Growth of 21.65%

July 8, 2010
Net direct tax collections during first quarter of the present fiscal (up to June

2010) stood at Rs.68,675 crore, up from Rs.59,465 crore in the same period last
fiscal, registering a growth of 15.49 percent. Growth in Corporate Taxes was

21.65 percent (Rs.43,439 crore as against Rs.35,709 crore), while Personal

Income Tax (including STT, and residual FBT and BCTT) grew at 1.24 percent

(Rs.24,075 crore as against Rs.23,780 crore). 

Corporate advance tax for the first quarter, at Rs.26,876 crore in FY 2010-11

against Rs.20,456 crore in FY 2009-10, grew at 31.4 percent, fastest since 2005.

The corresponding growth in corporate advance tax stood at -3.4%, 25.1%, 30%

and 26.9% for FY 2008-09, 2007-08, 2006-07 and 2005-06, respectively. 

Securities Transaction Tax, however, recorded a negative growth at 25.21

percent during the first quarter (Rs.1,094 crore in FY 2010-11 as against

Rs1,462 crore in FY 2009-10). 

Govt mulls two-rate personal tax structure

Grey areas over revenue implications cause of concern.

Our Bureau

New Delhi, Jan. 6

In the run-up to Budget 2010-11, the Finance Ministry is mulling a reduction in the

number of personal incometax rates from the current three to two.

At present, there are three rates - 10, 20 and 30 per cent - and these are applied on

slabs that are specified from year to year as part of the Budget.
The Finance Ministry is looking to simplify the number of rates without sacrificing

revenues. The proposed Direct Taxes Code, however, suggests three rates - 10, 20

and 30 per cent - that could be applied on seemingly generous income slabs. Even

as a section of Finance Ministry favours the and fewer rates.

The strong economic growth between 2004 and 2007 also helped boost direct tax

collections, which now exceeds the indirect tax collections and also accounts for

over 50 per cent of the Centre's total tax kitty. In the past, even a single rate for

personal I-T was considered, but later given up for equity reasons.

Even for the current fiscal, the Centre is betting on higher direct taxes to make

good the shortfall in indirect tax collections. Although the proposed Direct Taxes

Code seeks to substantially relax the slabs for individual taxpayers, the relief will

be neutralised to some extent through changes in the method of taxation of savings

from the current Exempt-Exempt- Exempt (EEE) method to the proposed Exempt-

Exempt- Tax (EET) method.

Tax experts think that the proposed Code does not really give a new deal to the

personal income taxpayers falling under the aam-admi category although there

have been promises that the existing savings will not be brought under the new

EET method. It might benefit the senior management of companies, whose

remuneration comes in various forms other than salary such as ESOPs, cars and

rent-free accommodation.

A new simplified Direct Taxes Code and Goods and Services Tax (GST) are two

important tax reforms promised by the UPA Government. Indications are that GST

may not be implemented from April 1 as a number of legislative, administrative

steps are yet to be completed.

Direct tax collection to jump: CBDT chief

10 July 2010

MUMBAI, 10 JULY: Direct tax collection in the country is likely to see a

substantial increase after the proposed Direct Taxes Code and Goods and Service

Tax regimes come into force, a top government official said today. 

“We are moving towards a scenario where I think there will be a substantial

increase in collection of taxes. The Direct Tax Code (DTC) and Goods and Service

Tax (GST) will soon be put in place. The GST will help us in direct tax

collection,” Central Board of Direct Taxes (CBDT) chairman, Mr SSN Moorthy

said here. 

Once the GST is in place, all transactions would become transparent, Mr Moorthy

said. He was speaking at a seminar on Tax Deduction at Source (TDS), organised

by the Indian Merchants' Chamber here today. 

The direct tax collection for the June quarter was Rs 68,675 crore, and according to

estimations, it will rake in a total revenue of Rs 4.30 lakh crore during this fiscal. 

The direct tax collection for 2009-10 was Rs 3.80 lakh crore. 

However, Mr Moorthy did not address issues such as recent changes in the draft

DTC, such as payment of minimum alternate tax against book profits instead of

gross assets and non-taxation of schemes such as provident fund, which may cause

a loss of revenue for the exchequer. 

The CBDT chairman said that the debt crisis in the Eurozone was unlikely to affect

the domestic economy or impact tax collection. Pti

May, 13th 2010

Finance minister Pranab Mukherjee on Wednesday said the government would

soon come out with the new draft of the direct taxes code (DTC) after

incorporating changes based on feedback from corporates and individuals on the

earlier draft.

The finance minister told members of the Confederation of Indian Industry (CII)

that this would be the "semi-final draft" since he would still be open to suggestions

from them before he presents the final draft to Parliament for approval.

Central Board of Direct Taxes (CBDT) chairman S. S. N. Moorthy, too, said on

Wednesday the draft would come out for public debate in next two months.

The new DTC aims at radical reforms of direct taxes and simplification of the tax

structure. Once approved, it will replace the Income Tax (I-T) Act of 1961 and

other related laws. It is slated to be introduced in April 2011.

However, the finance minister said the new direct taxes code covering corporate

and income tax norms would have to be tabled in Parliament at the earliest to

allow sufficient time for discussions before it comes into force in the next financial

year. There have been serious misgivings among corporates over the clauses of the

earlier draft as it had proposed to tax companies on the basis of gross assets instead

of profits.

This would have put companies in the power and infrastructure sector in serious

trouble as they would not be earning any profits over a long period while they

were being set up but would have to pay taxes on gross assets, which have been

created through bank loans.

The earlier draft had also proposed to tax long-term savings, such as provident

funds and pension funds at the time of withdrawal, which would cause hardship to

people on retirement.
Mukherjee said the goods and services tax (GST), which the country plans to

introduce to replace the Central excise and levies by state governments, was also

on track and he was sorting out the problems with the state finance ministers.

He said the Central government would compensate the state governments for any

loss in revenue in switching to the new system.

The finance minister said the finance commission had already provided for setting

aside Rs 50,000 crore to meet any shortfall in revenue of the states.

"Money for compensating the states would not be a problem," he added.

He said the GST would be a win- win option for both the Centre and the states.

Meanwhile, CBDT chairman Moorthy said India's direct tax collection for 2008-09

is unlikely to meet the revised target of Rs 3.87 lakh crore.

"The final figure will be available soon after compilation of all the transactions. As

of today, it is around Rs 3.78 lakh crore. The total tax collection may be around Rs

3.8 lakh crore," Moorthy said at a seminar on Tax Deduction at Source (TDS)

organised by the industry body, The Associated Chambers of Commerce and

Industry of India (Assocham).

According to the provisional data available with the government, the actual

collection of direct taxes is Rs 3.75 lakh crore. The government had earlier revised

and increased the target for direct tax collection by Rs 7,000 crore to Rs 3.78 lakh

crore.

Moorthy elaborated that the TDS component in direct tax collection was

encouraging.

"It contributed about 40 per cent of the total direct tax collection, generating a

revenue of Rs 1.53 lakh crore in the last fiscal," he added.

The finance minister also expressed concern over the impact of high food inflation

on the common man, but exuded confidence that the government would beat the

surging prices in the next few months.

He said since some states do not have effective delivery mechanism, the proper

impact of the Centrally initiated measures to contain inflation did not have the

desired results in these states. Therefore, the finance minister said, there is an

urgent need to revamp the public distribution system (PDS), possibly with the help

of smart cards, to ensure that the poor are not affected by the rising food prices.
Direct tax collection to rise substantially: CBDT chairman

BY DECCAN HERALD
"We are moving towards a scenario where I think there will be a substantial

increase in collection of taxes. The Direct Tax Code (DTC) and Goods and Service

Tax (GST) will soon be put in place. The GST will help us in direct tax collection,"

Central Board of Direct Taxes (CBDT) chairman S S N Moorthy said here.Once

the GST is in place, all transactions would become transparent, Moorthy said. He

was speaking at a seminar on Tax Deduction at Source (TDS), organised by the

Indian Merchants' Chamber here today.The direct tax collection for the June

quarter was Rs 68,675 crore, and according to estimations, it will rake in a total

revenue of Rs 4.30 lakh crore during this fiscal.The direct tax collection for 2009-

10 was Rs 3.80 lakh crore.However, Moorthy did not address issues such as recent

changes in the draft DTC, such as payment of minimum alternate tax against book

profits instead of gross assets and non-taxation of schemes such as provident fund,

which may cause a loss of revenue for the exchequer.The CBDT chairman said

that the debt crisis in the Eurozone was unlikely to affect the domestic economy or

impact tax collection."The symptoms are very good... as reported, the indirect tax

collection has gone up by 40 per cent, which shows that industry has picked up. I

don't think Portugal or Greece will leave any shadow on us," Moorthy said.The

CBDT chairman exuded confidence that the government would be able to achieve

the direct tax target of Rs 4.30 lakh crore for this fiscal."The target is quite stiff.

We have to collect about Rs 4,30,000 crore after surrendering about Rs 26,000

crore in the form of process streamlining and reduction in TDS rates in the last

budget," he said.