Even as the country’ inflation peaked at a 13-year high of 12.4% for week ended August 2, the government pointed at a robust tax collection to indicate that the economy remains healthy. Reports had earlier appeared showing regarding early signs of an economic slowdown based on advance tax payments by corporates during the Financial Year 2008-09.
Among the figures released by the government, the total direct tax collection during April-July 2008 is Rs 71,648 cr as against an amount of Rs 48,756 cr during the same period last year translating into a robust growth rate of 47%. The tax deducted on source (TDS) during April-July 2008 on payments received by companies increased by 60% to Rs 22,128 cr from Rs 13,782 cr during the same period last year. This increase in TDS collections, is reflected in relatively lower growth rate of 24% in advance tax payments as compared to 28% during April-July 2007-08.
Though the direct tax collection has been up but the figures presented by the government are for Apr-Jul period and the government itself forecasted slowdown in the economy for the coming quarters, thus government itself has negated the argument fir strong growth.
The total direct tax collection of India, Asia's third largest economy after China and Japan, comprises mainly advance tax payments, tax deducted at source, self-assessment tax payments, and post-assessment tax collections. At the level of the taxpayer, advance tax payments and tax deducted at source are substitutes and inversely related to each other, that is, if the tax deducted at source (TDS) is high, a relatively smaller amount is payable as advance tax.
Among the figures released by the government, the total direct tax collection during April-July 2008 is Rs 71,648 cr as against an amount of Rs 48,756 cr during the same period last year translating into a robust growth rate of 47%. The tax deducted on source (TDS) during April-July 2008 on payments received by companies increased by 60% to Rs 22,128 cr from Rs 13,782 cr during the same period last year. This increase in TDS collections, is reflected in relatively lower growth rate of 24% in advance tax payments as compared to 28% during April-July 2007-08.
Though the direct tax collection has been up but the figures presented by the government are for Apr-Jul period and the government itself forecasted slowdown in the economy for the coming quarters, thus government itself has negated the argument fir strong growth.
The total direct tax collection of India, Asia's third largest economy after China and Japan, comprises mainly advance tax payments, tax deducted at source, self-assessment tax payments, and post-assessment tax collections. At the level of the taxpayer, advance tax payments and tax deducted at source are substitutes and inversely related to each other, that is, if the tax deducted at source (TDS) is high, a relatively smaller amount is payable as advance tax.
Posts
No comments:
Post a Comment