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Net Direct Tax Jumps 45%, Advance Tax Mop-Up Rises 33% In Q1 FY23

The net direct tax numbers, up 45%, are expected to "further fortify the economic revival", the government said.

Net Direct Tax Jumps 45%, Advance Tax Mop-Up Rises 33% In Q1 FY23

Direct tax collections jumped by almost half in the first quarter of the ongoing fiscal.

The cumulative net tax mop-up as on June 16 stood at Rs 3.39 lakh crore for the April-June 2022 period compared with Rs 2.33 lakh crore a year ago, according to a statement issued by the Central Board of Direct Taxes. Of this, corporate tax amounts to Rs 1,70,583 crore and personal tax (including security transaction tax) stands at Rs 1,67,960 crore.

The net direct tax numbers, which registered a 45% rise, is expected to "further fortify the economic revival", the statement said.

The robust collections come at a time when the government faces a subsidy bill of Rs 2.10 lakh crore owing to excise cuts and fertiliser subsidies, part of the measures announced to combat inflation, last month.

Advance tax collections rose 33% over a year earlier in the first quarter of FY23. This includes advance corporate tax of Rs 78,842 crore and advance personal tax of Rs 22,175 crore.

The advance tax is paid in four instalments through the year, with the first quarter amounting to 15% of the evaluated tax liability of companies and individuals for the particular fiscal.

Category wise tax collection for Q1 FY23:

  • Gross Direct Tax: Rs 3,69,559 crore

  • Net Direct Tax collection: Rs 3,39,225 crore (net of refund)

  • Advance tax: Rs 1,01,017 crore (growth of 33%)

  • Tax deducted at source: Rs 2,29,676 crore (46 % growth)

  • Self-assessment tax: Rs 21,849 crore (41 % growth)

  • Regular assessment tax: Rs 10,773 crore

  • Tax on distributed profits : Rs 5,529 crore

  • Tax under other minor heads Rs 715 crore

Refunds amounting to Rs 30,334 crore have been issued in the first quarter of 2022-23.

(Updates an earlier version with the numbers as on June 16, 2022 released by the Ministry of Finance.)