Mumbai: Direct tax receipts by the government rose 38 per cent to Rs3,09,000 crore as total tax collections crossed to Rs588,000 crore during fiscal 2007-08.

This exceeded the government's revised target of Rs304,000 crore and officials expect to mop up another Rs3,000 crore in direct tax dues for 2007-08, P K Misra, chairman of the Central Board of Direct Taxes, said on the sidelines of Assocham seminar.

Indirect tax collections were over Rs279,000 crore, taking total tax receipts by the government to over Rs588,000 crore during 2007-08, he said, adding the government was confident of meeting the direct tax collection target of Rs3,65,000 crore for 2008-09.
 
The government had set a Rs323,000 crore target for indirect tax collections in 2007-08.

"The economy is growing at a robust pace, income of individuals have gone up and compliance has increased. There has been evidence that lower tax rates have led to higher receipts,"  Misra said, adding, "We will be exceeding the target for this year also."

He attributed the increase in tax receipts to better compliance and the increase in the number of people coming under the tax net.

Of the total direct tax collections, corporate income tax contributed Rs1,89,000 crore, up over 33 per cent from the Rs131,000 crore of the previous year.

The share of personal income tax grew 444 per cent at Rs1,10,000 crore, over Rs76,000 crore collected in 2006-07.

The securities transaction tax on the stock markets added Rs8,577 crore to the government's kitty, netting 81 per cent more than in the previous year.

Banking cash transaction tax contributed Rs582 crore.

Officials expect indirect taxes, which includes excise, customs and service tax, this year (2008-09) to exceed the target of Rs3,23,000 crore.

Officials expect the robust growth in industry and buoyant imports to offset the money foregone in duty cuts.