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Tax collections up 20 p.c. in Apr.-Jan.

Special Correspondent

FBT, Banking Cash Transaction tax and Stock Transaction tax fetch Rs. 4,922 cr.

NEW DELHI: The Centre's tax collections in 2005-06 at about Rs. 2,63,570 crore till January this year has witnessed a 20 per cent rise with the current buoyancy in the economy and boom in trade and industry, expectations are that the budgeted target for revenue mop-up for the current fiscal will be met.

For this fiscal, the Government has budgeted for a net tax collection of Rs. 2,73,466 crore after providing for refunds and the share of States in the Centre's revenue pool.

According to official sources, the mop-up in direct taxes during the April-January period of 2005-06 surged by 27 per cent to Rs. 1,09,585 crore, while indirect tax collections also grew by 16.2 per cent to Rs. 1,53,988 crore. In direct taxes, the mop-up from the income-tax segment alone went up by about 35 per cent to Rs. 44,491 crore till January 2006.

The fact that the higher IT collection this fiscal has been despite the increase in the personal tax exemption limit and adjustment of slabs is an indications that the net is getting wider.

Also, with India Inc. going from strength to strength each quarter in the current fiscal, corporate tax collections also increased by 21 per cent to Rs. 65,094 crore.

Apart from the wider taxpayer base, although a major reason for the higher mop-up has been the increase in salaries, the other contributory factor is the two new taxes levied this fiscal. While the "traumatic'' Fringe Benefits Tax (FBT) has netted Rs. 2,744 crore, the Banking Cash Transaction Tax (BCTT) fetched another Rs. 221 crore.

With the ongoing boom in the stock market, the Government has also managed to garner yet another tidy sum of Rs. 1.957 crore as Securities Transaction Tax (STT). In effect, this levy on stock transaction along with FBT and BCTT has brought an additional sum of Rs. 4,922 crore into the Government's kitty.

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