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The Income Tax Department has managed to get little over ₹24000 crore on the last day of the second instalment of advance tax payment. With this, the total net direct tax collection between April 1 and September 15 has reached ₹2.53 lakh crore, a decline of 22.5 per cent in comparison to FY 2019-20.
This data is for collecton registered till 8.30 pm on September 15. Finance Ministry officials said final figures will change as there is lot of conciliation and re-conciliation to be done, which will take A couple of days.
Officials said that corporate tax collection on September 14 was ₹82,611 crore, which rose to over ₹99,000 crore on September 15, showing advance tax collection of over ₹16,500 crore. Similarly, collection through personal income tax went up to over ₹1.47 lakh crore from ₹1.39 lakh crore, showing an increase of over ₹7,600 crore.
Overall decline
Talking about net direct tax collection, the official said that barring Bengaluru, all tax regions showed a decline with Kochi showing a de-growth of 49 per cent, while Kolkata registered a decline of 46.9 per cent. Mumbai, the region with the maximum direct collection, is still in the red zone with nearly 14 per cent shortfall in net collection on a year-on-year basis.
The government has set a target of ₹13.91 lakh crore through direct taxes (corporate tax and personal income tax). The rate of contraction has come down from June, but it is still over 20 per cent. With refunds being issued in large numbers, the net figure is expected to be affected. However, Finance Ministry officials hopes that with some improvement in the third quarter and with resolution through Vivad se Viswas Scheme, both of these will have some positive impact on direct tax collection.
Advance tax is required to be paid during a financial year in every case where the amount of such tax payable by the assessee during that year is ₹10,000 or more. All such assesses, corporate or individual, need to pay in four instalments during the financial year. The first due date is June 15, when at least 15 per cent of the total estimated tax to be paid. Second due date is September 15, when 30 per cent of total estimated tax required to be paid.
Another 30 per cent of tax due is to be paid by December 15 while remaining amount is required to be deposited by March 31. Deferment of advance tax will attract interest at the rate of 1 per cent per month on the amount of shortfall from 15/45/75 per cent, as the case may be, of the tax due on the returned income.
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