Direct tax collections up 39% in April-June

NEW DELHI: If the revenue collection is any indicator of economic performance, the first quarter of 2008-09 suggests a continuation of robust growth in the country. The direct tax collections in the period have gone up by 38.6%l at Rs 57,373 crore compared to Rs 41,391 in the year-ago period. "The growth in direct taxes has been maintained despite much larger refund pay-outs at Rs 11,578 crore against Rs 7,302 crore during the corresponding period last fiscal," said a finance ministry statement issued here on Friday. Analysts said robust tax collections are expected to help the government maintain fiscal deficit at 2.5% during 2008-09 despite increase in expenditure in the election year. During the first three months, corporate taxes have grown by 32.65% and stood at Rs 34,566 crore against Rs 26,058 crore in first quarter... [read full story]