Direct tax collection soars 48% in FY22, tax prepayment up 41% – The New Indian Express


NEW DELHI: India’s personal and corporate income tax collection jumped more than 48% in the current fiscal year after a 41% increase in tax advance payments, reflecting a sustained economic recovery in a year that has seen two waves of coronavirus infections.

Net direct tax collections up to March 16, 2022, in the fiscal year which started on April 1, 2021, stood at Rs 13.63 lakh crore compared to Rs 9.18 lakh crore during the same period a year ago, according to an official statement.

Net collections of direct taxes, which consist of personal income tax, corporation tax on company profits, property tax, inheritance tax and donations, in the current fiscal year are 35% higher than the collection of Rs 9.56 lakh crore in the pre-pandemic year 2019-2020 (April 2019 to March 2020).

Advance tax collections, the fourth installment of which was due on March 15, reached Rs 6.62 lakh crore, up 40.75 percent, the statement said, adding that refunds totaling Rs 1.87 lakh crore were issued during the current fiscal year.

Almost 53 percent of all direct tax revenue came from corporation tax, while 47 percent came from personal income tax, including securities transaction tax (STT). ) on stocks.

Direct tax collections exceeded Rs 11.08 lakh crore budgeted before the start of the fiscal year and revised estimates of Rs 12.50 lakh crore in Finance Minister Nirmala Sitharaman’s budget for 2022-23 presented on 1 February.

The spread of the pandemic and the resulting restrictions had impacted business activities in 2020-21.

Towards the end of this financial year, the economy had started to recover from the impact, but was hit again by a second wave in April-May 2021 and a more recent third wave.

Omicron’s rapid containment, vaccination and decline in new infections helped the recovery.

“The direct tax collections figures for the financial year 2021-22, as of March 16, 2022, show that the net collections are Rs 13,63,038.3 crore compared to Rs 9,18,430.5 crore over the corresponding period of the financial year previous i.e. FY 2020-21, representing an increase of 48.41%,” the statement said.

Net inflow in the current financial year recorded a growth of 42.50% over the corresponding period of FY 2019-20, when net inflow was Rs 9,56,550.3 crore, and a growth of 34.96% compared to the same period of the 2018-19 financial year. when the net collection was Rs 10,09,982.9 crore.

Net direct tax revenue includes Corporate Income Tax (CIT) of Rs 7,19,035.0 crore (net of refund) and Personal Income Tax (PIT) including STT of Rs 6,40,588.3 crore ( net of reimbursement).

The gross collection of direct taxes (before adjustment for refunds) for the financial year 2021-22 (as of 16 March 2022) stood at Rs 15,50,364.2 crore compared to Rs 11,20,638.6 crore during the corresponding period of the previous year.

The gross collection for the financial year 2019-20 was Rs 11,34,706.3 crore and that for the financial year 2018-19 was Rs 11,68,048.7 crore. Gross collection includes CIT of Rs 8,36,838.2 crore and PIT of Rs 7,10,056.8 crore.

“Minor Per Head Collection (as of March 16, 2022), includes Advance Tax of Rs 6,62,896.3 crore, Withholding Tax of Rs 6,86,798.7 crore, Self Assessment Tax of Rs 1,34,391.1 crore a regular valuation tax of Rs 55,249.5 crore; dividend distribution tax of Rs 7,486.6 crore and tax under other minor heads of Rs 3,542.1 crore,” the statement read.

Cumulative advance tax collections for the current financial year 2021-22 stood at Rs 6,62,896.3 crore as of March 16, 2022, compared to Rs 4,70,984.4 crore for the corresponding period of the previous financial year .

This was 50.5% higher than the anticipated collection of Rs 4,40,281.4 crore in the 2019-20 financial year and 31% higher than the Rs 5,06,714.2 crore mopped up in the 2018-19.

The withholding tax amount of Rs 6,62,896.3 crore includes CIT of Rs 4,84,451.8 crore and PIT of Rs 1,78,441.1 crore. “This amount is expected to increase as further information is expected from the banks,” the statement added.

Refunds amounting to Rs 1,87,325.9 crore have also been issued in the financial year 2021-22 so far.

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