Clocking the fastest growth in seven years, India's direct tax collection in the fiscal year 2017-18 stood at about Rs 10.03 lakh crore.
Clocking the fastest growth in seven years, India’s direct tax collection in the fiscal year 2017-18 stood at about Rs 10.03 lakh crore, Reuters reported. Between April 2017 and March 2018, the direct tax collection was up 18% year-on-year. Last month, a finance ministry official had said the country’s direct tax mop-up had exceeded the budget target.
The growth rate of direct tax collection may be attributed not only to the economic growth but also the improving tax compliance and the rigorous collection approach adopted by the revenue department, Gopal Bohra, Partner, NA Shah Associates had told FE Online last months. The surge in the direct tax collection could also be due to the ripple effect of the GST on growing the direct corporate tax collections.
Arun Jaitley in February explained that a lot of businesses have become a part of the formal economic system under GST, which has led to an impact on direct corporate taxes as well.