The Centre?s net direct tax collections in the first quarter of 2009-10 grew 3.65%, owing to higher outgo on tax refunds. Direct tax receipts amounted to Rs 59,465 crore between April and June 2009 as against Rs 57,373 recorded a year ago, according to official data released on Wednesday. In stark contrast, net direct tax collections grew by a whopping 45.68% in Q1 of 2008-09.

?Lower growth in net tax collection was mainly on account of higher tax refund outgo of 52.01% at Rs 17,600 crore in the present quarter as against Rs 11,578 crore in the first quarter last fiscal,? the Central Board of Direct Taxes explained in a release.

Analysts, however, said lower growth in collections is also because of the base effect. ?The first quarter of 2008-09 was much better. So on comparing tax collections on a quarter-to-quarter basis, 3.65% growth is reasonably well,? Vikas Vasal, KPMG executive director, said.

In the month of June this year, collections grew at an even more laggard pace of 2.24% to Rs 35,307 crore as against Rs 34,533 crore during June 2008.

Despite decent advance tax collections in the first tranche ending June 15, corporate tax receipts between April and June 2009 rose by just 3.31% to Rs 35,709 crore ? an indication that India Inc is yet to recover fully from the domestic meltdown. Till June end last year, corporate tax receipts had stood at Rs 34,566 crore.

Similarly, growth in personal income tax collections (inclusive of fringe benefit tax and the securities transaction tax) was a dismal 4.38% to Rs 23,780 crore till June 2009 as compared to Rs 22,782 crore in the same period a year ago.

Significantly collections from both the FBT and the STT went into the red. While FBT receipts dipped 7.56% to Rs 1,031 crore, STT collections fell 9.9% to Rs 1,462 crore in the first quarter of the fiscal.

?FBT collections have dipped because many companies have gone on a cost-cutting drive after the global recession and

have limited expenditure on travelling and hotel stay.

The domestic bourses are not performing,?explained Sandeep Chaufla, tax partner Ernst & Young.

The April to June direct tax collections is significantly lower than the budgeted growth of 9.2% for the fiscal.

Net direct tax collections are estimated at Rs 3,69,575 crore in 2009-10 as against Rs 3,38,212 crore collected last fiscal.

Although the CBDT is confident of meeting its targets, lower than estimated collections will also impact the Centre?s burgeoning fiscal deficit, which is already projected at 6.8% of the GDP in 2009-10.