The slowdown in industrial growth has started impacting direct tax revenue, as it rose by a mere 4.68 percent during the April-July period.
New Delhi: The slowdown in industrial growth has started impacting direct tax revenue, as it rose by a mere 4.68 percent during the April-July period.
Corporate tax collection showed a decline during the period.
The gross direct tax collection in April-July this fiscal went up by a paltry 4.68 percent to about Rs 1.39 lakh crore, from Rs 1.32 lakh crore in the corresponding period last year.
What is more worrying factor is decline in the growth in corporate tax collection which fell by 1.51 percent during the first four months of the fiscal.
The gross direct tax collection in the April-July period stood at Rs 83,932 crore, lower than Rs 85,222 crore in the same period last fiscal.
Country's industrial production growth rate slowed to 2.4 percent in May, on back of poor show by manufacturing sector.
However, gross personal income tax collection saw a robust rise of 16 percent to Rs 54,642 crore in the four month period, up from Rs 47,195 crore in the year ago period.
The net direct Tax collection was up by a healthy 34 percent to Rs 1.05 lakh crore against Rs 78,679 crore in the same period last year, primarily on account of much lower refunds.
Alongside, gross wealth tax collection went up by 41.60 percent to Rs 177 crore in the April- July period.