“The sectors that have done well in advance taxes (up to Q2FY22) include steel, manufacturing, mining. Steel is doing even better than FY20, so is pharmaceuticals, wholesale trade and financial services,” revenue secretary Tarun Bajaj told FE.
Aided by robust performance of sectors such as steel, manufacturing and mining, Q2FY22 advance tax collections rose by 52% on year to Rs 1.72 lakh crore and 21% over the corresponding quarter in FY20.
“The sectors that have done well in advance taxes (up to Q2FY22) include steel, manufacturing, mining. Steel is doing even better than FY20, so is pharmaceuticals, wholesale trade and financial services,” revenue secretary Tarun Bajaj told FE. Advance tax collections from Mumbai region were up by 80% on year as on September 23; there were also up 60% in Delhi, 80% in Chennai and 85% in Hyderabad, Bajaj added.
As on September 22, the cumulative advance tax collections grew 56% on year to Rs 2.53 lakh crore and up 14.6% over the corresponding period in FY20. Net direct tax collections (post refunds) stood at Rs 5.71 lakh crore, an increase of 74% over the corresponding period in FY21 and up 27% over the period in FY20.
On tax revenue growth exceeding the overall economic performance, Bajaj said a combination several factors including a trend towards greater formalisation — and much better compliance were boosting the revenues.
Personal income growing by 62% on year to Rs 2.88 lakh crore till September 23 of the current fiscal indicated that use of technology and goods and services tax (GST) data is leading to much better compliance.
Separately, another official had told FE that the Centre’s net tax collections (direct and indirect taxes) could exceed budget target by about Rs 2 lakh crore in FY22, largely covering the additional fiscal cost of stimulus measures announced by the government so far.