Advance tax collections rise 50%

The gross direct tax collection (before refunds) stood at Rs 10.8 lakh crore as on December 16, 2021, showing a 47% growth on year and 29% compared with the period in FY20.

These cases mainly pertained to arithmetical errors in computation of income and tax, errors in levy of interest, irregularities in allowing depreciation/business losses/capital losses, irregular exemptions/ deductions/ rebates/ relief/MAT credit, incorrect allowance of business expenditure, income not assessed/under assessed under normal provisions, etc," it said.Out of 356 high value cases, CAG has illustrated 38 instances of significant errors/irregularities in Corporation Tax assessments involving tax effect of Rs 3,976.56 crore.CAG said application of incorrect rates of tax and surcharge, errors in levy of interest, excess or irregular refunds "point to weaknesses" in the internal controls in the Income Tax Department (ITD) which need to be addressed.It said that while the finance ministry has taken action to initiate correction in the cases pointed out by the Audit, it may be mentioned that these are only a few illustrative cases, test checked in audit.
These cases mainly pertained to arithmetical errors in computation of income and tax and errors in levy of interest.

Aided by revival of economic activities and better compliance, the Union government’s advance direct tax collections from companies, LLPs and individuals rose 50% on year to about Rs 2.1 lakh crore in Q3FY22, even as a favouarble base effect waned. It had grown 51.5% on year in Q2FY22, on a relatively low base. Till December 16 of the current fiscal, the mop-up (post refunds) stood at Rs 9.45 lakh crore, up about 61% on year, up 40% over the same period in FY20 and 41% over the same period in FY19. The last date of Q3 advance tax payment is December 15, although some amounts continue to trickle in for a few more days.

The direct tax collections, which are about 85% of the FY22 target of Rs 11.08 lakh crore, are poised to exceed the target by a decent margin.

Cumulative advance tax collections till December quarter of FY22 stood at Rs 4.6 lakh crore (as on December 16) compared with about Rs 3 lakh crore a year ago, showing an annual growth of 53.5%. The cumulative advance tax collections till December quarter of FY22 were 44% higher than in the corresponding period of FY20 and 50% over the period in FY19.

The gross direct tax collection (before refunds) stood at Rs 10.8 lakh crore as on December 16, 2021, showing a 47% growth on year and 29% compared with the period in FY20.

The gross collection includes corporation tax (CIT) at Rs 6.06 lakh crore and personal income tax (PIT), including security transaction tax(STT), at Rs 4.75 lakh crore. Minor head wise collection comprises advance tax of Rs 4.6 lakh crore, tax deducted at source of Rs 4.93 lakh crore, self-assessment tax of Rs 74,336 crore; regular assessment tax of Rs 44,029 crore; dividend distribution tax of Rs 6,526 crore and tax under other minor heads of Rs 2,391 crore.

Refunds aggregating to Rs 1.35 lakh crore have been issued so far in the current financial year.

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