The third quarter advance corporate tax collection from the top 100 companies from the city has shown a modest 15 per cent growth year-on-year backed by higher payouts by the banking and financial sector, according to the income tax department sources.

The growth chart is led by the largest financial institution LIC which has paid 10 per cent more at Rs 1,297 crore in advance tax payout for the third quarter compared to Rs 1,166 crore in the same period a year ago.

However, the largest lender State Bank of India has paid marginally lower advance tax in the third quarter at Rs 1,701 crore as against Rs 1,730 crore in the same period last year.

A statement from the State Bank said its total advance tax outgo this fiscal touched Rs 4,694 crore as against Rs 4,484 crore paid in the corresponding period last fiscal, which is a growth of 4.5 per cent.

Similarly, housing lender HDFC said it has paid Rs 560 crore in advance tax against Rs 475 crore in the year ago period, a growth of 18 per cent.

Advance tax is a staggered way of paying income taxes through the year. It is generally taken as a barometer of a company’s earnings for the period.

Mumbai contributes over a third of the overall direct tax collection. The I-T department is targeting to collect Rs 1,78,453 crore from the city this fiscal, a 13.5 per cent jump over last year.

Leading private sector banks like ICICI Bank and HDFC Bank have seen their tax payouts increasing.

While ICICI Bank has paid 35 per cent more at Rs 675 crore up from Rs 500 crore, the second largest private sector lender HDFC Bank has paid Rs 1,000 crore in the third quarter of this fiscal as against Rs 900 crore in the same period last fiscal.

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