The advance collection of corporation tax and personal income tax in the first quarter grew 146 per cent over last year, while overall net direct taxes doubled during this period compared to 2020, after hopes of economic recovery despite the second wave of the pandemic.
Collection in the first quarter grew to Rs 28,780 crore against Rs 11,714 crore, the preliminary data released by the Central Board of Direct Taxes showed on Wednesday. Of the advance tax, corporation tax accounted for Rs 18,358 crore and personal income tax Rs 10,422 crore.
“This amount is expected to increase as further information is received from banks,” the Ministry of Finance said in a statement. Advance tax is paid as and when the money is earned in four instalments rather than at the end of the fiscal year. It is considered an indication of economic sentiment. The first instalment or 15 per cent of the annual tax is to be paid by June 15, the second by September 15 (30 per cent), the third by December 15 (30 per cent), and the rest by March 15.
Direct tax collection, net of refunds, grew by 100.4 per cent till June 15 to Rs 1.85 trillion compared to Rs 92,000 crore in the same period last year. Corporation tax stood at Rs 74,000 crore, net of refunds, and personal income tax including security transaction tax stood at Rs 1.11 trillion.
Gross collection at Rs 2.16 trillion is 57 per cent higher than last year. Refunds are down at Rs 30,731 crore compared to Rs 45,063 crore last year. The Budget has estimated revenues from direct taxes at Rs 11.08 trillion, which will need a growth rate of 17 per cent over the 2020-21 actuals. Last year, the direct tax mop-up at Rs 9.47 trillion was 9.7 per cent lower than the previous year due to the impact of the pandemic, but exceeded the revised estimates, which stood at Rs 9.05 trillion.
Mumbai saw collection grow by nearly 96 per cent to Rs 55000 crore from Rs 28000 crore last year during this period. Delhi has seen a 77 per cent jump to Rs 23,000 crore from Rs 13,000 crore last year. Chennai and Pune have posted an expansion of 100 per cent and 167 per cent, respectively, to Rs 12,000 crore each.
The CBDT had received Rs 54,005 crore from the Vivad se Vishwas Scheme by March and the government was expecting another Rs 20,000 crore by April 30. However, the date of payments was extended to June 30 in a notification last month in view of the challenges arising due to the second Covid-19 wave.