mumbai indias direct tax collection grew 16 in 10 months this fiscal sharply lower than the 35 pace needed to meet the governments fullyear projection according to figures available with the incometax department direct tax receipts in the current fiscal to february 5 grew to 36 lakh crore against the governments fullyear projection of 580 lakh crore the government had initially estimated a 20 increase in direct tax mopup in 201112 to 533 lakh crore but the target was revised to 33 on the finance ministrys instructions unless there is a marked improvement in the economy in the coming six weeks we would not be able to meet the revised target we may however meet the original target a senior it official said although the fourth and final installment of advance tax is yet to come in due by mid march the it department could gauge the trend through payments received as tax deducted at source tds selfassessment tax and tax paid after regular assessment tds the tax deposited with the it department within a month of deductions from clients or employees accounts for 3540 of the total tax collected in a year going by the figure so far the department says it may just be able to meet the original target of 533 lakh crore the tardy growth in tax mopup is attributed to a sluggish economy which is reflected in the shrinking margins of several companies another official said that factors such as almost nil tax outgo from oil companies reduced margins of domestic banks and the order in the vodafone tax case involving a demand of 10000 crore were affecting collection this fiscal the department was also hoping to raise another 10000 crore from crossborder acquisitions similar to vodafones acquisition of hutch essar taxes have also dried up from oil companies which till last year were collectively paying over 20000 crore however the mopup from sectors such as pharma fmcg cement and foreign banks is likely to be better as reports indicate improved margins for companies