Mumbai: Net direct tax collections during first seven months of the current fiscal (up to October 2008) stood at Rs166,905 crore, up from Rs128,864 crore, recording a growth of 29.52 per cent, despite the global financial crises and its impact on the Indian economy.

Corporate taxes grew 33.49 per cent (Rs105,174 crore as against Rs78,785 crore), while personal income tax (including FBT, STT and BCTT) grew at 23.14 per cent (Rs61,433 crore as against Rs49,890 crore).

The rise in tax collections has mainly been due to an improvement in the tax deduction at source (TDS) mechanism and better tax compliance, reflected in a growth of 35.78 per cent in TDS and 52.76 per cent in self-assessment tax, according to the Central Board of Direct Taxes (CBDT).

Corporate TDS grew 48.2 per cent at Rs36,004 crore as against Rs24,293 crore in the same period last year. Despite substantial tax relief allowed to individual taxpayers in the union budget 2008, growth of PIT TDS was 26 per cent at Rs38,868 crore as against Rs30,845 crore in the same period last year.

Corporate TDS grew over 48 per cent while fringe benefit tax (FBT) rose above 47 per cent and dividend distribution tax grew above 48 per cent, indicating continued strength of the Indian economy. Securities transaction tax (STT), however, grew at a negative 1.60 per cent due to an erosion in stock values.

Despite lower advance tax payments by certain sectors such as real estate, infrastructure, cement, automobile, power, textile and downstream oil companies, advance taxes recorded positive growth in mining, mineral, metal, engineering, banking, telecom, IT, pharma and consumer goods sectors.

Direct tax collections, which were revised upwards mid-way for this fiscal, rose by just 10.66 per cent at Rs19,708 crore in October, mainly due to advancement of last date for filing of corporate tax returns this year.

The collections stood at Rs17,809 crore in the corresponding fiscal last year.

However, according to official sources, the figures for October 2008 are not comparable with the year-ago period since corporates paid shortfall in their tax liability in September after the last date of filing returns was advanced to 30 September this year from 31 October.