Economic affairs report of GOI – economy is fine!
The Economic Affairs Report presents a rosy picture of the economy. Just look at the Income Tax report.,
++ In 2006-07, direct tax collections provisionally amounted to Rs.2,30,091. The direct taxes collection exceeded both Budget Estimate of Rs 2,10,684 crore by a wide margin and even bettered the stiff target set in the Revised Estimates of Rs.2,29,272 crore. Thus 109.21% of Budget Estimate and 100.36% of Revised Estimate has been achieved.
++ This is for the first time that the annual growth rate of direct tax collections has been more than 20% for five consecutive years and the last year's growth was at stupendous rate of 39.27% over previous year.
++ Direct tax-GDP ratio for 2006-07 recorded at 5.58% as against 4.63% for 2005-06. With the current trend of collection the ratio is likely to reach a healthy figure of 6.5% of GDP.
++ The collection from arrear demand during 2006-07 recorded at Rs 12,285 crore against an internal target of Rs 11,741 crore. The collection from arrear demand for 2006-07 has shown a quantum jump of 52.3% over the previous year's arrear collection of Rs.8,064 crore.
++ The Budget Estimates for direct taxes for 2007-08 have been fixed at Rs.2,67,490 crore. The collections till October 2007 records at Rs. 1,28,864 crore, which is 43.15% more than the collections made during the corresponding period of 2006-07. In fact the Income Tax Department has already collected 48.18% of Budget Estimate though December and March quarter of advance tax are yet to be paid.
++ Collections under Fringe Benefit Tax up to October 2007 amount to Rs.2,755 crore. Collections under Securities Transaction Tax and Banking Cash Transaction Tax for the same period are Rs.3,783 crore and Rs. 311 crore, respectively. There is a growth of 43.02% in the collections under these three new taxes during April-October 2007 over the collections during the same period last year.
++ The Pilot Project of State Bank of India acting as a Refund Banker has been extended to select charges of four more cities namely Mumbai, Kolkata, Chennai, Bangalore apart from existing cities at Delhi and Patna. The refunds are issued to the taxpayers both through paper and ECS mode through the refund banker.