Net direct tax collections in first half up 15.8% to ₹3.86 trillion

NEWDELHI: Net direct tax receipts in the first half of the current financial year jumped to ₹3.86 trillion, a 15.8% growth from a year ago, adding up to about two-fifths of the targeted direct tax collection for the full year, Central Board of Direct Taxes (CBDT) said.

In the 2017-18 budget, the finance ministry had set a direct tax target of ₹9.8 trillion.

Prior to adjusting for refunds, gross direct tax receipts during the April-September period stood at ₹4.66 trillion, showing a growth of 10.3% from a year ago. The tax department has issued refunds of ₹79,660 crore so far this financial year.

A higher growth rate in net tax collection compared to gross receipts could indicate lower refunds during the period under review than a year earlier.

The tax department received ₹1.77 trillion as advance tax up to 30 September, reflecting a growth of 11.5% over the corresponding period a year ago.

Advance corporate tax collection grew 8.1%, while advance personal income tax rose 30.1% in the period under review, said the department.

Tax collection growth usually picks up in the second half of the financial year.