The Hindu Business Line : Net direct tax collections up 41% in Apr-Sept 21

Continued buoyancy in corporate advance tax payments, higher tax deduction at source on corporate expenses, including salary payments and improved tax compliance, has helped the Centre record a 40.5 per cent increase in net direct tax collections up to September 21 this fiscal at Rs 1,06,095 crore (Rs 75,510 crore).

Official sources said that advance tax payments so far stood at about Rs 57,500 crore, which accounted for about 47 per cent of the gross tax collections of about Rs 1,22,500 crore. For the period under review, advance tax payments increased 32 per cent and tax deduction at source (TDS) increased by 48 per cent on a year-on-year basis.

“It is the surge in TDS collections that has largely contributed to this 40 per cent growth levels. Corporate advance tax payments continue to be buoyant and this has come on a higher base of last year,” a revenue department official said.

In April-September 21 this year, corporate tax collections recorded 42.37 per cent growth to Rs 67,207 crore (Rs 47,207 crore). Personal income tax (including FBT, STT and BCTT) collections grew 37.47 per cent to Rs 38,819 crore (Rs 28,238 crore), an official release said.

Companies pay advance tax on their estimated earnings for the entire year. By September 15, advance tax has to be paid on 45 per cent of the estimated profits for the entire year. Advance tax payments fall due on June 15, September 15, December 15 and March 15.

For the period under review, securities transaction tax (STT) grew 45.52 per cent, banking cash transaction tax (BCTT) increased by 21.36 per cent and fringe benefit tax (FBT) jumped 87.41 per cent.

In April-August this year, the Centre’s net direct tax collections grew 42 per cent to Rs 61,030 crore compared with Rs 42,980 crore in the corresponding period last year.