Gross direct tax collections rose over 37% in April-May 2011 from a year-ago period, indicating at least for now that slowdown has not taken a toll on tax revenues . However, tax experts say any firm conclusion about the impact of the slowdown on revenues can be drawn only when corporates pay first installment of advance tax later this month. All the data releases last week pointed towards a moderation in growth. Net direct tax collections dropped 48% in the first two months to Rs 12,954 crore fromRs 24,878 crore because of large refunds, data released by the government on Monday showed. Gross tax collections were up at Rs 50,405 crore in April-May against Rs 36,702 crore. The direct tax collections in the first couple of months mostly include personal income tax and those by professional firm. Corporates pay the first installment of direct tax only in the middle of June. India's companies pay advance tax four times in a year. A finance ministry official said government would meet the annual target of Rs 5.32 lakh crore for 2011-12 and allayed any apprehensions of a possible slowdown impacting direct tax revenues.
source:ET
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