A sharp jump in refunds eroded the Centre's net direct tax collections by 8.13 per cent during April-July 2011. However, gross tax collections for the period showed improved performance with a growth rate of 26.63 per cent, higher than the 24 per cent growth seen in the first quarter.
The improved performance mainly came through higher corporate taxes that grew about 30 per cent during April-July.
The overall refunds payout by the Tax Department jumped 183.18 per cent during to Rs 53,863 crore (Rs 19,021 crore). Net direct tax collections declined 8.13 per cent to Rs 78,679 crore (Rs 85,647 crore). Gross direct collections stood at Rs 132,546 crore (Rs 104, 668 crore). While gross corporate taxes collections were up 29.56 per cent at Rs 85,222 crore (Rs 65,776 crore), personal income tax collections grew 21.64 per cent at Rs 47,214 crore (Rs 38,816 crore). Securities transaction tax collections stood at Rs 1,555 crore (Rs 1,652 crore).
The direct taxes collections target for 2011-12 is pegged at Rs 5.32 lakh crore (at the Budget Estimate stage).