Corporation and personal income tax collections decline in October
December 04, 2024 09:21
October this year, as always, fell in the festival season but that did not manifest in high tax numbers, particularly direct taxes. For instance, corporation-tax was down 16 per cent at Rs 26,356 crore in the month year-on-year (Y-o-Y), while personal income tax fell 12 per cent at Rs 61,937 crore.
This resulted in a decline of 11.9 per cent at Rs 88,293 crore in direct taxes in the month. As such, corporation-tax collection rose by just 1.2 per cent till October this financial year while the Budget has projected this tax to rise almost 12 per cent during FY25.
Personal income tax was up 16.8 per cent during the first seven months of FY25, which is much higher than the 13.6 per cent projected by the Budget for the year, show figures released by the Controller General of Accounts (CGA).
Direct taxes rose 11.1 per cent at slightly over Rs 11 trillion during April-October on a yearly basis while the Budget has projected them to rise 12.8 per cent.
In the previous year too, corporation-tax collection fell 13 per cent in October but then Diwali fell on November 13, which meant festivities were for a few more days. However, personal income tax rose almost 24 per cent in October in FY24.
Corporation tax was up 14.8 per cent till October last financial year, while personal income tax rose almost 24 per cent. Besides these two taxes, excise duty was down 12 per cent in October this financial year. This led to a rise of just 0.6 per cent of excise duty till October whereas the Budget has projected a rise of 4.5 per cent for the year.
-- Indivjal Dhasmana/Business Standard
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