The Direct Tax collection for the period April 1 to December 15 has gone up by 42.5% compared to the same period last year.
The Direct Tax collection for the period April 1 to December 15, 2007 has gone up by 42.5% to Rs. 1,64,407 Crores compared to Rs. 1,15,377 Crores in the same period last year. (The figures for 2007 are provisional)
Corporate tax has registered a 42.4% growth, and income tax (personal) collection has increased by 42.8%. Securities Transaction Tax (STT), Fringe Benefit Tax (FBT) and Banking Cash Withdrawal Tax have also shown a healthy increase.
What does this mean for you?
A healthy growth in corporate tax collection means that companies are not only growing at a fast pace, but are also growing profitably. The current valuation of the Indian stock markets assumes a high growth for Indian companies, and this growth in tax collection vindicates this assumption.
The growth in personal income tax shows that individuals are maintaining a healthy increase in their pay packages, which would further stimulate the domestic demand.
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