RTTNews - India's advance tax collections rose during April- June period of the current fiscal, the first time in six months, reported the Economic Times. According to the figures available with the direct tax authorities, the advance tax collection for April 1 to June 16 period for 2009 rose to over Rs.48,000 crore compared to year ago figure of Rs.41,800 crore.
The corporate tax accounted Rs.26,000 crore out of the total collection of Rs.48,000 crore and industry sources views it as a sign of recovery of the economy in near future. Many companies and firms grew between 10% and 20% that resulted in higher tax collections this year than the previous year.
The increase in tax collection in April-June is significant in view of the fact that it recorded an increase of 70% over that of the year ago period due to unexpected business boom witnessed during this period. However, collections began shrinking from last September, reflecting the slowdown of the economy, ultimately ending the fiscal with a shortfall in tax collection to the tune of over Rs 55,000 crore.
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