The direct tax collections:
The direct tax collections up to June, 2016 indicate net revenue collection of Rs.1.24 lakh crore which is a growth of 24.79% over the corresponding period last year. The main reason for this increase is the change in the requirements for advance tax payment even in respect of individuals which has been made in the last year’s Budget. Earlier there were only three installments of advance tax to be paid by individuals in the months of September, December and March.
From the current year, individuals are also supposed to pay four installments of advance tax at the rate of 15%, 30%, 30% and 25% in the months of June, September, December and March of every Financial Year. The collection up to June, 2016 indicates that 14.63% of the annual budget target of direct taxes has been achieved in the first three months of the F.Y. 2016-17.
In terms of growth rate for corporation tax and personal income tax, the trend in gross revenue of corporation tax is indicating an increase of 13.5% while that of personal income tax (including STT etc.) a growth of 29.8%. However, after adjusting for refunds, the net growth in corporation tax is at 4.43% while that of personal income tax (including STT etc.) at 48.75% as compared to previous year .This increase is mainly due to large refunds made in the previous year as compared to the current year.
The Indirect tax collection:
Indirect tax collection for the 1st quarter of 2016-17 indicates a growth rate of 30.8%.The figures of indirect tax collection for the 1st quarter of current fiscal 2016-17 indicates a growth rate of 30.8% as compared to the 36.3% in the corresponding period of previous financial year. Once the Additional Resource Mobilization (ARM) is removed, the growth rate in Q1 is 10.2% [Customs: 11.2%, Central Excise: 13.9% & Service Tax: 4.3%].