The projection also includes an additional Rs 1,156 crore on account of self-assessment tax of Rs 931 crore paid by the Deposit Insurance and Credit Guarantee Corporation, a subsidiary of the Reserve Bank of India which did not pay any tax last year.

In addition, Exim Bank, which has become a taxable entity this year, is expected to contribute Rs 125 crore, while another Rs 100 crore was expected from New India Assurance Corporation, consequent to the amendment to the first schedule of the Income-Tax Act.

The income-tax department, during a review meeting with finance minister Yashwant Sinha, projected a total of Rs 10,686 crore as corporate tax from the region, with the top 600 corporate tax-payers likely to contribute Rs 9,530 crore.

The trend of overall advance-tax collections in the first five months of the currentfinancial year has been encouraging and the budgetary target of Rs 11,524 crore was likely to be achieved, according to the presentation made to the minister here on Friday.

An analysis in gross collections also gives an indication that assessees who do not figure in the top 600 companies have registered higher growth in advance-tax collections. An important feature is that the net collection of corporate tax has increased by Rs 1,623 crore, despite more refunds have been issued compared with the previous year, sources said.

Income-tax collections have shown a growth of 11.9 per cent over the corresponding period last year, and presuming the same growth is maintained for the whole year, collections may fall short of the target of Rs 4,400 crore by Rs 460 crore, sources said.

However, the target of interest tax, which is yet another component of direct tax, may be difficult to achieve.

Government securities, which earlier accounted for 40 per cent to 50 per cent of interest tax, are no longer taxable.Moreover, the rate of interest tax has also been reduced to 2 per cent.

Meanwhile, collections in important cases whose revenue potential is high, such as big corporates, oil companies and banks are being monitored by senior officers, department sources said.

Requests have also been made to the appellate authority to decide cases of high-demand appeals on a priority basis, and while tax-deductions-at-source machinery was being revamped, surveys are being conducted to tap new sources.