Advance tax collection up 10% at Rs 78,226 crore

According to a statement released by the finance ministry, advance tax collections were Rs 78,226 crore during the Q3 against Rs 70,826 crore collected during the corresponding period last year.

The collection figures come after the stern warning to tax payers to either pay advance tax on time or else face strict action.

According to the Income Tax Act, it is mandatory for individuals, professionals and corporates to pay advance tax if the estimated tax liability after adjusting tax deducted at source is Rs 10,000 or more during the financial year.

Tax payers missing the deadline have the option of depositing the remaining tax instalment by March 15, with an interest payment of 1 per cent per month for every month’s delay.

During the April-December period, the advance tax collection was up only 7.52 per cent over the corresponding period last fiscal. It includes corporation tax growth rate of 7 per cent and personal income tax growth rate of 12.3 per cent.