Advance tax collections rise 13% to ₹5.2L crore till December 17 – Times of India


NEW DELHI: Advance tax collections, paid by companies and certain individuals, have gone up 12. 8% to over Rs 5. 2 lakh crore, according to the latest official numbers released on Sunday.
Close to Rs 4 lakh crore is on account of payments towards corporation tax, with the remaining amount of over Rs 1. 2 lakh crore on account of personal income tax. While advance tax is to be paid in four instalments, up to December 15 three instalments had to be paid with the final tranche due in the middle of March.
Advance tax is seen as a good barometer of direct tax collections, which seem to be holding strong so far. The government has budgeted for a 13. 6% increase in gross direct tax collections during the current financial year to Rs 14. 2 lakh crore.
The numbers released by the finance ministry estimated that during the fiscal year up to December 17 gross direct tax collections increased 26. 9% to over Rs 13. 6 lakh crore, compared to Rs 10. 8 lakh crore during the corresponding period last year.
Within this, the corporation tax mop-up was estimated at Rs 7,25,036 crore, with personal income tax adding up to nearly Rs 6. 4 lakh crore. According to the data released by the finance ministry, advance tax accounted for over 38% of the gross collections, while the share of TDS was just a little under 50%.
“There has been a remarkable increase in the speed of processing of income tax returns filed during the current fiscal, with almost 96. 5% of the duly verified income tax returns (ITRs) having been processed till December 17, 2022. This has resulted in faster issue of refunds with almost a 109% increase in the number of refunds issued in the current financial year,” the finance ministry said in a statement. Refunds during the fiscal year up to December 17, 2022 were just under Rs 2. 3 lakh crore, 69% higher than the level in the corresponding period last year.
Net collections are pegged around 20% higher at Rs 11,35,754 crore, the finance ministry said.
The Centre is so far ahead of the asking rate on the tax front, providing it muchneeded cushion during a year when it had to step up spending due to higher fertiliser, food and fuel subsidies, driven by the conflict in Ukraine. The government has stated that it will strive to achieve fiscal deficit of 6. 4% of GDP this year.


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