Q2 Advance Tax Collections Up 17% On Year
Meanwhile gross direct tax collections as of Sept. 17 stood at Rs 8.36 lakh crore.
Advance tax collections rises 17% on year to Rs 2.95 lakh crore after the second instalment in FY23. Out of this advance corporate tax was Rs 2.29 lakh crore while personal tax stood at RS 66,176 crore.
These figures are till Sept. 17. The window for paying the second instalment of advance tax ended on Sept. 15.
Advance tax is paid in four instalments through the year, with the second instalment amounting to 45% of the total evaluated tax liability for the particular fiscal.
Meanwhile gross direct tax collections as of Sept. 17 stood at Rs 8.36 lakh crore compared to Rs 6.42 lakh crore in the last year, registering a 30% increase.
“The gross collection of direct taxes (before adjusting for refunds) for FY2022-23 stands at Rs 8,36,225 crore compared to Rs 6,42,287 crore in the corresponding period of preceding financial year i.e. 2021-22, registering a growth of 30% over collections of 2021-22,” the finance ministry said in a statement.
Refunds amounting to Rs 1.36 lakh crore have been issued up till Sept. 17 this fiscal. Refunds too have shown an 83% growth over FY22 when it stood at RS 74,140 crore.
The cumulative advance tax collections for April-September stand at Rs 2.95 lakh crore as on Sept. 17, up 17% over the year-ago period.
Earlier last month, CBDT chairman Nitin Gupta had told media that if the collection trend continues to rise, the direct tax collections would exceed the budgetary estimates of Rs 14.2 lakh crore. Of this, Rs 7.2 lakh crore is expected from corporate tax while Rs 7 lakh crore is expected from personal income tax in the fiscal.
Category wise tax collection as on September 17th, 2022:
Gross Direct Tax: Rs 8,36,225 crore (30% YoY growth)
Net Direct Tax collection: Rs 7,00,669 crore (net of refund)
Refunds : Rs 1,35,556 crore
Advance tax (second instalment) : Rs 2,95,308 crore (growth of 17% YoY)
Advance corporate tax share - Rs 2,29,132 crore
Advance personal tax share - Rs 66,176 crore.
Gross Corporate tax: Rs 4,36,020 crore
Gross Personal Income tax: Rs 3,98,440 crore (including securities transactio tax)
Tax Deducted at Source: Rs 4,34,740 crore
Self assessment tax Rs 77,164 crore
Regular assessment tax: RS 20,080 crore
Tax under other minor heads: 8,933 crore
The department attributed the rise as a clear indicator of revival of economic activity post pandemic and a result of stable policies of the government which has focused on plugging leakages, simplifying and streamlining the process.
Indirect Taxes too have been positive registering over Rs 1.4 lakh crore for the last six months. Expecting festive demand ahead, Revenue Secretary Tarun Bajaj speaking at an event in Mumbai last week noted that monthly collection could rise to Rs 1.5 lakh crore in the upcoming months.