Net direct tax mop-up grows 74% at Rs 5.70 lakh cr so far this fiscal

By: |
Updated: September 24, 2021 6:42 PM

The advance tax collection comprises corporation tax (CIT) at Rs 1.96 lakh crore and personal income tax (PIT) at Rs 56,389 crore.

The net collection (April 1 to September 22) in FY 2021-22 has registered a growth of 27 per cent over 2019-20 fiscal when the net collection was over Rs 4.48 lakh crore. In the previous fiscal (2020-21), the net collection was over Rs 3.27 lakh crore.

The net personal income and corporate taxes collection grew 74 per cent to Rs 5.70 lakh crore so far this fiscal, driven mainly by advance tax and TDS payments.

The mop up of net direct tax (which is arrived at after deducting refunds from gross collection) between April 1-September 22 was at Rs 5,70,568 crore, a 74.4 per cent growth over Rs 3.27 lakh crore collected in the same period last fiscal, the Central Board of Direct Taxes (CBDT) said in a statement. It is 27 per cent growth over Rs 4.48 lakh crore collected in 2019-20.

The gross direct tax collection so far this fiscal stands at over Rs 6.45 lakh crore, a 47 per cent growth over Rs 4.39 lakh crore mopped up in the corresponding period of the preceding year. The gross collection was 16.75 per cent higher than Rs 5.53 lakh crore collected between April 1-September 22 of 2019-20 fiscal.

While over Rs 2.53 lakh crore has been collected through advance tax, Tax Deducted at Source (TDS) mop-up was over Rs 3.19 lakh crore. Self-assessment tax worth Rs 41,739 crore, regular assessment tax of Rs 25,558 crore, dividend distribution tax of Rs 4,406 crore and tax under other minor heads of Rs 1,383 crore has been mopped up.

“The cumulative advance tax collections for the first and second quarter of the FY 2021-22 stand at Rs 2,53,353 crore as on September 22, 2021, against advance tax collections of Rs 1,62,037 crore for the corresponding period of the immediately preceding financial year i.e 2020-21, showing a growth of 56 per cent,” the statement said.

The advance tax collection comprises corporation tax (CIT) at Rs 1.96 lakh crore and personal income tax (PIT) at Rs 56,389 crore.

The gross CIT mop up was Rs 3.58 lakh crore and PIT was over Rs 2.86 lakh crore, while net CIT was at Rs 3.02 lakh crore and PIT was at Rs 2.67 lakh crore.

Refunds amounting to Rs 75,111 crore have also been issued in the FY 2021-22 so far.

The CBDT said that despite extremely challenging initial months of the fiscal year 2021-22, the advance tax collection in the second quarter (July 1 to September 22, 2021) of FY 2021-22 is Rs 1.72 lakh crore, which shows a growth of 51.50 per cent over the corresponding period in FY 2020-21 when the advance tax collection was Rs 1.13 lakh crore.

Nangia Andersen LLP Partner Sandeep Jhunjhunwala said businesses, although not unscathed, were better prepared to ride the second wave.

“The significantly higher tax collection numbers bear proof of the projected improvement in India’s economic growth rate. FY 2020-21 was a one of a kind year that caught taxpayers and governments across the world by surprise. Therefore, the 27 per cent improvement in tax collection from FY 2019-20, when the economy was more stable than it is today, may be more reassuring than the 74.4 per cent improvement from FY 2020-21 when businesses experienced a significant dip,” he said.

Jhunjhunwala further said that the improvement in advance tax collection over 2019-20 demonstrates a strong bounce back.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1U.S. takes aim at China’s ‘unfair trade practices’ at WTO review
2India expected to see higher salary with 9.3 pc hike in 2022: Report
3IMF Chief Economist Gita Gopinath to leave job and return to Harvard University