Advance direct tax receipts from companies, limited liability partnerships (LLPs) and individuals rose by 16.8% on year for the third quarter of the current financial year, reflecting some moderation in tax payments. However, the pace of collections still exceeded the Budget estimates of gross (pre-devolution) direct tax receipts, which is 12.4%.
As of December 15, the third quarter advance tax payment stood at Rs 3.15 lakh crore compared with Rs 2.7 lakh crore a year ago, sources said. The growth in advance tax receipts have moderated from 27.4% in Q1 and 20.2% in Q2.
Corporate advance tax receipts rose by 13.5% on year to Rs 2.28 lakh crore in Q3FY25 against Rs 2.01 lakh crore a year ago. Such receipts had grown by 15.7% in Q2 and 23.2% in Q1 of the current fiscal.
Advance personal income tax (PIT) receipts rose by 26.5% on year to Rs 86,624 crore in Q3FY25 compared with Rs 68,459 crore a year ago.
Advance tax collections are a good indicator of corporate profitability and rise in individuals’ earnings. Advance taxpayers have to pay 15% of their annual income tax liability by June 15, 45% by September 15 and 75% by December 15.
The Centre’s direct tax collection collections (net of refunds) rose about 15.2% on year to Rs 15.79 lakh crore till December 15 of the current financial year, sources said. With the direct tax collections requirement growth being 12.7% on year to achieve the FY25 target of Rs 22.07 lakh crore, the trends indicate that it could be slightly exceeded. Direct tax collections have reached 71.5% of the annual target by December 15.
Corporation tax receipts stood at Rs 7.42 lakh crore or 72.7% of the annual target while income tax receipts stood at Rs 8.36 lakh crore or 70.4% of the annual target as of December 15.
Direct tax refunds rose 49% on year to Rs 3.35 lakh crore till December 15 of the current financial year.