Advance tax receipts increased by 22% in Q2: Report

In the second quarter of the current fiscal year, the Center’s advance direct tax collections increased by roughly 22% year over year to Rs 1.81 trillion, according to CNBC TV18.

However, a senior member of the revenue department told FE that the data was “premature” since it was still being totaled. The 15th of the month was the deadline for the September quarter’s advance tax payment.

In the first quarter (June quarter), the government collected around Rs 1.01 trillion in advance direct tax from businesses, LLPs, and individuals.

Despite a strong 65% increase in refunds at that time, the Centre’s direct tax revenues (post-refunds) increased by a solid 30% on year until September 8 of the current fiscal year.

Due to increased compliance and a favorable base effect, personal income tax (PIT) and corporate income tax (CIT) both performed significantly better than expected.

Given that the FY23 Budget objective is on par with actual revenues from the previous fiscal year, the Center’s direct tax collections are anticipated to significantly surpass the FY23 Budget target of Rs 14.2 trillion.

Up until September 8 of FY23, the rise in CIT collections was 32.73% and that in PIT collections (including STT) was 28.32% after adjustments for refunds. From April 1, 2022, to September 8, 2022, reimbursements of Rs. 1.19 trillion were granted. This is an increase of 65.29% above refunds provided during the same period the year before.

Before refunds, gross direct tax receipts increased by 35.5% year over year to Rs 6.48 trillion as of September 8 of the current fiscal year.

Leave a Reply

Your email address will not be published. Required fields are marked *