It seems the green shoots are here to stay. After a strong surge in advance tax collections, direct tax collections for this fiscal have risen by nearly 4 per cent up to Rs 173,447 crore for the first seven months of current fiscal compared to the same period last year.
The major uptick has come from corporate taxes which have risen by almost over 4.5 per cent to Rs 109,996 crore in April-October. Personal income tax collections are also up close to 3 per cent.
But the government's coffers are still getting lighter as net collections are down by almost 40 per cent, thanks to a steep rise in refunds.
Earlier in August, the Union Finance Minister, Pranab Mukherjee increased direct tax collection target by Rs 30,000 crore for the current fiscal to Rs 4 lakh crore.
Collections from Mumbai, which contributes 36 per cent of total direct tax collections, are up by almost 20 per cent which has increased optimism that Mumbai will cross it's tax collection target for this year.