A steep fall in advance tax payouts by bad loan-saddled state-run banks has led to a muted 10.6 per cent growth in overall revenue mop-up from large corporates in the megapolis in the September quarter.
A steep fall in advance tax payouts by bad loan-saddled state-run banks has led to a muted 10.6 per cent growth in overall revenue mop-up from large corporates in the megapolis in the September quarter. The overall mop-up at Rs 69,000 crore, up 10.64 per cent, is tepid even though other sectors like steel and even private sector lenders have done comparatively well, income tax department sources said today. Unsatisfied with the collection, the department has asked its officials to keep a close vigil on the forthcoming quarterly results by large corporates.
Advance tax collections from the Mumbai zone, which is home to 45 of the top 100 corporates and is responsible for one-third of the total direct tax collections, grew only 10.64 per cent to Rs 69,000 crore as of September 15. The zone had collected Rs 62,370 crore in the year-ago period. State-run banks have not done well this time. In contrast, private sector banks have been okay when it comes to advance tax payment, sources said, adding however, other sectors like steel have done comparatively well in the September quarter.
While the country’s largest lender State Bank paid a whopping 37 per cent less, foreign lender Citigroup also paid 34 per cent less. In contrast, oil major HPCL and steel major Tata Steel saw their outgo jumping 70 per cent each, while mortgage major HDFC paid 10.47 per cent more. “Advance tax collection from the Mumbai zone is not satisfactory and hence the officials have been directed to maintain a constant vigil on quarterly results,” the newly- appointed principal chief commissioner of income tax and head of the Mumbai zone, PC Mody told PTI here today.
Overall, direct tax collections from the Mumbai zone grew 25 per cent to Rs 1.2 trillion as of September 15 from Rs 96,000 crore a year ago. The Mumbai zone has been targeted with mopping up Rs 3.16 trillion for the entire fiscal in direct taxes. Urging taxpayers to voluntarily comply with the tax laws, Mody warned that delinquents will be dealt with firm hands.