Despite the second wave of COVID19 Tax collection has doubled and almost 85 percent up than the last year. Direct tax collection, net of refunds, was Rs 1.62 lakh crore up to June 11, 2021, 85 percent higher than Rs 87,700 crore collected during the same period in FY21. it is partially due to payments from the Vivad se Vishwas (VsV) Direct Tax Dispute Resolution Scheme and lower issuance of refunds, the report said.
Gross tax collection so far this fiscal year stood at Rs 1.93 lakh crore, 54 percent higher than the number in the same period last year. Refunds in FY21 so far were Rs 31,000 crore, 17 percent lower than the refunds issued during the same timeframe in FY22.
In the Covid-hit, in FY 2020-21, the central government mopped up an additional tax revenue of Rs 67,133 crore, a 4.9% rise y-o-y, according to data released by the Controller General of Accounts (CGA). Income tax collection in the next quarter is expected more as The government has extended the due date for filing income tax returns for the assessment year 2021-22 by two months, to September 30, 2021, from the existing deadline of July 31, 2021, while giving extension to tax audit and 12 compliance deadlines for FY 21 to provide relief to taxpayers due to Covid pandemic. The date for furnishing the audit report has been extended to October 31, from September 30, for the same assessment year.
However, taxpayers, whose entire income tax liability is not discharged by TDS and advance tax and such shortfall is more than Rs 1 lakh, will have to file their returns within respective original due date to avoid a charge of interest at the rate of 1% per month for every month after the original due date.