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In a sign of economic resilience despite the devastating Covid-19 second wave, advance tax collections surged almost one-and-half times in the first quarter of 2021-22 compared to the previous fiscal year, pushing up significantly the net direct tax collections in the first two-and-half months of the new fiscal.
Despite 2021-22 opening on a challenging note, the advance tax collection for the first quarter stood at ₹28,780 crore against ₹11,714 crore in the corresponding previous period, a growth of approximately 146 per cent, a statement issued by the Central Board of Direct Taxes said. June 15 was the due date for the first instalment of advance tax. Out of total collection, based on provisional data, corporate tax had a share of ₹18,358 crore while personal income tax contributed ₹10,422 crore. The CBDT said that number could go up as reconciliation with banks is yet to be completed.
According to Section 208 of the Income Tax Act, every assessee, barring those above the age of 60 not running any business, having estimated TDS (Tax Deducted at Source)/TCS (Tax Collected at Source) for the year of ₹10,000 or more, is required to pay advance tax in four instalments (15 per cent of the total by June 15; 45 per cent by September 15; 75 per cent by December 15, and the entire amount by March 15).
Net collection soars
Overall,e gross direct tax collections for FY22 exceeded ₹2.16-lakh crore against ₹1.38-lakh crore in the corresponding previous period. With refunds of over ₹30,000 crore, the net collection totalled ₹1.86-lakh crore, showing a growth of more than 100 per cent over the ₹93,000 crore mopped up in the same two-and-half of the last fiscal. Corporate tax collection topped ₹74,000 crore while personal income tax contributed over ₹1.11-lakh crore.
Neeru Ahuja, Partner with Deloitte India, said the direct tax collections have risen substantially and the primary reason for this appears to be the success of the Vivad se Vishwas scheme. “Taxpayers have taken advantage of the scheme and have settled their disputes/litigations with the Income-Tax Department besides depositing their tax dues,” she said.
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