Direct tax collection surges 48% in FY22, advance tax payment up 41%

New Delhi, March 17

India’s collection from tax on personal and corporate income jumped over 48% in the current fiscal after a 41% surge in advance tax payments, mirroring sustained economic recovery in a year that witnessed two waves of coronavirus infections.

Net collection of direct taxes until March 16, 2022, in the fiscal year that started on April 1, 2021, stood at Rs 13.63 lakh crore compared to Rs 9.18 lakh crore in the same period a year ago, an official statement said.

The net collection in direct taxes, which is made up of income tax on individual income, corporation tax on profits of companies, property tax, inheritance tax and gift tax, in the current fiscal is 35% higher than the collection of Rs 9.56 lakh crore in the pre-pandemic year of 2019-20 (April 2019 to March 2020).

Advance tax collection, the fourth instalment of which was due on March 15, rose to Rs 6.62 lakh crore, up 40.75%, the statement said, adding refunds aggregating to Rs 1.87 lakh crore have been issued in the current fiscal.

Almost 53% of all direct tax collection was from corporate tax, while 47% came from personal income tax, including securities transaction tax (STT) on shares.

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

The spread of the pandemic and the ensuing restrictions had impacted business activities in 2020-21. Towards the end of that fiscal, 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. — PTI

Mop-up stands at Rs13.63 lakh crore

• Net collection of direct taxes until March 16 in the current fiscal stood at Rs13.63 lakh crore compared to Rs9.18 lakh crore in the same period a year ago
• The net collection of direct taxes in the current fiscal is 35% higher than the collection of Rs9.56 lakh crore in the pre-pandemic financial year of 2019-20
• Advance tax collection rose to Rs6.62 lakh crore, up 40.75%, the statement said, adding refunds aggregating to Rs1.87 lakh crore have been issued in the current fiscal