Mumbai: Direct tax collections in the country during the first quarter of fiscal 2008-09 showed a 38.6 per cent rise in net collections, lower than the 47.5 per cent growth of the same quarter last year. 

Data released by the finance ministry showed direct tax collections rose to Rs57,373 crore in the first quarter of this fiscal from Rs41,391 crore in the year-ago period.

During the first three months, corporate taxes have grown 32.65 per cent to Rs34,566 crore from Rs26,058 crore in the first quarter of the last fiscal, the ministry release said.

Personal income tax, including fringe benefit tax (FBT), securities transaction tax (STT) and banking cash transaction tax (BCTT), increased 48.84 per cent to Rs22,782 crore from Rs 15,306 crore a year ago.

FBT collections were up 38.74 per cent, while STT and BCTT grew at 22.11 per cent and 21.03 per cent, respectively.

In Mumbai and Delhi, direct tax collections grew 40.19 per cent and 53.57 per cent, respectively. Other regions with high tax growth were Nagpur (74.08 per cent), Kochi (68.08 per cent), Bangalore (47.26 per cent) and Calcutta (45.30 per cent).

Officials said tax deducted at source continued to drive direct tax collections with a growth rate of about 50 per cent, while self-assessment tax grew at 35 per cent, reflecting continued improvement in tax compliance and administration.

''The growth in direct taxes has been maintained despite much larger refund payouts at Rs11,578 crore against Rs7,302 crore during the corresponding period last fiscal,'' a finance ministry statement said.

The robust tax collections, although lower than that of last year, are expected to help the government in keeping fiscal deficit nearer its objective of 2.5 per cent. However, rising inflation, subsidy payments on food and fertilisers, the over-70,000 crore farm loan write-downs and wage hikes for government employees are expected to push the deficit upwards.

Finance minister P. Chidambaram has asked the Central Board of Direct Taxes to revise the budget estimate of Rs3,65,000 crore upwards to Rs4,00,000 crore for the whole year. Last fiscal, the government had mopped up around Rs3,14,000 crore in direct taxes alone.

The Reserve Bank has forecast a GDP growth rate of 8.5 per cent, down from last year's 9 per cent.