India's tax collections for the current year shoot up smartly

There is some good news for India's tax authorities. Indirect and direct tax collections for the fiscal year so far have shot up, 30% and 24%, respectively. 

Ministry of Finance, on Tuesday, said that indirect tax collections upto July 2016 stood at Rs 2,71,719 crore as against Rs 2,09,217 crore for the same period last year. "Till July, 2016, 34.9 % of the Budget Estimates of indirect taxes for FY 2016-17 has been achieved," it said in a statement. 

Central excise and service tax outdid customs by registering a growth of 50.8% and 25.8%, respectively. "Total collections on account of Central Excise during the first four months of current FY 2016-17(April 2016-July 2016) stood at Rs 1,23,273 crore as compared to Rs 81,748 crore during the same period in last Financial Year and thereby registering the growth of 50.8%. Tax collections on account of Service Tax stood at Rs 19,600 crore in month of July 2016 as compared to Rs 15,685 crore during the same period in last year (July 2015) and there by registering a growth of 25% in this period. Total collections on account of Service Tax during the first four months of current FY 2016-17(April 2016-July 2016) stood at Rs 76,679 crore as compared to Rs 60,974 crore during the same period in last Financial Year and thereby registering the growth of 25.8%," Finance Ministry said. 

Direct tax collections, or corporate and income tax rose by over 24%, at Rs 1.59 lakh crore upto July 2016. "Till July, 2016, 18.82%of the Budget Estimates of direct taxes for FY 2016-17 has been achieved," the statement said. 

"As regards the growth rates for Corporate Income Tax (CIT) and Personal Income Tax (PIT), in terms of gross revenue collections, the growth rate under CIT is 11.65% while that under PIT (including STT etc.) is 31.47%. However, after adjusting for refunds, the net growth in CIT collections is 2.84% while that in PIT collections is 46.55%. Refunds amounting to Rs 64,181 crore have been issued during April-July, 2016, which is 10.43% higher than the refunds issued during the corresponding period last year," the Ministry further said.