Advance tax collections rise 150% in Q1 on low base

Refunds declined 32% to Rs 30,731 crore as on June 15 of FY22 in contrast with Rs 45,143 crore within the year-ago interval.

The Centre’s internet direct tax collections stood at Rs 1,85,871 crore as on June 15 this fiscal, double the extent within the year-ago interval, due to a low base, a pick-up in exports, higher compliance and decrease refunds. Advance tax collections within the first quarter of FY22 had been Rs 28,780 crore, up 146% on 12 months, because the June 15 deadline handed.

After all, because the chart exhibits, the collections, a mirrored image of company profitability, are nonetheless approach beneath the extent FY20, the 12 months earlier than Covid ravaged the economic system. Taxpayers need to deposit 15% of their estimated annual taxes as advance tax within the first quarter of a fiscal 12 months.

The web direct tax collections embrace company tax (CIT) at Rs 74,356 crore and private revenue tax (PIT), together with safety transaction tax (STT), at Rs 1,11,043 crore as on June 15.

Refunds declined 32% to Rs 30,731 crore as on June 15 of FY22 in contrast with Rs 45,143 crore within the year-ago interval.

“We’re cautiously optimistic at this stage. Direct tax numbers not solely communicate of the sturdy and system sure foundations of the tax division but in addition resilience of many sectors of the economic system which stood as much as the present challenges,” Central Board of Direct Taxes (CBDT) chairman JB Mohapatra instructed FE.

“The soar within the direct tax collections in Q1FY22 relative to Q1FY21, displays wholesome exports and a continuation of varied industrial and building actions, given the decrease stringency of the staggered regional lockdowns in 2021 vis a vis the nationwide lockdown in 2020. This helps our expectation that GDP will file a double-digit growth in Q1FY22,” mentioned ranking company Icra chief economist Aditi Nayar.

The gross direct tax collections (earlier than refunds) rose 57% to Rs 2,16,602 crore as on June 15, 2021, in contrast with Rs 1,37,825 crore within the corresponding interval of the previous 12 months. This contains CIT at Rs 96,923 crore and PIT at Rs 1,19,197 crore. In addition to advance taxes, different minor head sensible assortment includes tax deducted at supply of Rs 1,56,824 crore, self-assessment tax of Rs 15,343 crore, common evaluation tax of Rs 14,079 crore, dividend distribution tax of Rs 1,086 crore and tax underneath different minor heads of Rs 491 crore as on June 15 of FY22.

“This (Q1FY22 advance tax) includes CIT at Rs 18,358 crore and PIT at Rs 10,422 crore. This quantity is predicted to extend as additional info is acquired from Banks,” the CBDT mentioned in a press release.