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Direct tax collection has exceeded revised budget estimate by over ₹1 lakh, Income Tax Department data released on Thursday said. Higher collection means economy is recovering and companies along with people have more money now.
As on March 16, net collection (gross collection minus refund) touched over ₹13.63 lakh crore. This is over 48 per cent higher than collection of over₹9.18 lakh crore during the corresponding period of last fiscal (2020-21). Also, it is 42.5 per cent more than ₹9.56 lakh crore of FY 2019-20 (pre Covid period).
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An exclusive interview with Finance Minister Nirmala SitharamanThe government had set a target of ₹11.08 lakh crore in the budget for current fiscal which was revised to ₹12.50 lakh crore. The figure for current fiscal likely to go up as more advance tax collection data from the banks are still to come, the Central Board of Direct Taxes (CBDT) said.
Cumulative numbers
About advance tax collection, CBDT reported that cumulative number rose to around ₹6.63 lakh crore in the current fiscal as on March 16 as against around ₹4.71 lakh crore during corresponding period of last fiscal. This means growth of around 41 per cent. Also, total advance tax collection surged by over 50 per cent, if compared with corresponding period of FY 20.
As per section 208 of the Income Tax Act 1961, every person whose estimated tax liability for the year is more than or equal to ₹10,000 is liable to pay advance tax. Those who are excluded from paying advance tax are senior citizens who are above the age of 60, not having any income from business or profession.
One can pay the advance tax in four instalments by 15thday of June, September, December and March. On or before June 15, 15 per cent of advance tax is payable. By September 15, it should be 45 per cent of payment less amount already paid. By December 15, it will be 75 per cent of advance tax less already paid and balance amount by March 15. Non-payment of advance tax will invite interest.
Personal income tax numbers
CBDT said that out of total advance tax, Corporation Tax (CIT) stands at over ₹4.84 lakh crore while Personal Income Tax (PIT) is over ₹1.78 lakh crore. “This amount is expected to increase as further information is awaited from Banks,” it said.
In terms of overall figure, net collection of over₹13.63 lakh crore includes CIT at ₹7.19 lakh crore and PIT (including Securities Transaction Tax) at ₹6.41 lakh crore. CBDT also said refunds worth over ₹1.87 lakh crore have been issued so far in the current fiscal.
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