India’s tax collection on personal and business income rose by more than 48 percent in the current fiscal year after a 41 percent increase in tax prepayments, reflecting the ongoing economic recovery in a year of two waves of coronavirus infections.

Net direct tax collections up to March 16, 2022, in the fiscal year started April 1, 2021, were 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 collections in direct taxes, which consist of income tax on individual income, corporate income tax on corporate profits, property tax, inheritance tax and gift tax, are 35 percent higher in current tax than the collection of Rs 9.56 lakh crore in the pre-pandemic year 2019-20 (April 2019 to March 2020).

Advance payments, the fourth installment of which was due on March 15, rose to Rs 6.62 lakh crore, an increase of 40.75 percent, the statement said, and there are refunds totaling Rs 1.87 in the current fiscal year. spent lakh crore.

Nearly 53 percent of all direct tax collection came from corporate income taxes, while 47 percent came from personal income taxes, including securities transaction tax (STT) on stocks.

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

The spread of the pandemic and the resulting restrictions impacted business activities in 2020-21. Towards the end of that fiscal year, the economy began to recover from the impact, but was again hit by a second wave in April-May 2021 and a more recent third wave.

The rapid control of Omicron, vaccination and reduction of new infections aided the recovery.

“The figures of direct tax collections for the fiscal year 2021-22, as of March 16, 2022, shows that the net collections amount to Rs 13,63,038.3 crore as compared to Rs 9,18,430.5 crore over the corresponding period of the previous fiscal year iE FY 2020-21, representing an increase of 48.41 percent,” the statement said.

Net collection in the current fiscal year registered a growth of 42.50 percent over the corresponding period of FY 2019-20 when net collection was Rs 9,56,550.3 crore, and a growth of 34.96 percent over the same period. period of FY 2018-19 when the net collection was Rs 10,09,982.9 crore.

The net direct tax collections include corporate income tax (CIT) of Rs 7,19035.0 crore (net of refund) and personal income tax (PIT) including STT of Rs 6,40,588.3 crore (net of refund).

The gross collection of direct taxes (before adjusting for refunds) for the fiscal year 2021-22 (as on March 16, 2022) was Rs 15,50,364.2 crore compared to Rs 11,20,638.6 crore in the corresponding period of the previous fiscal year.

The gross collection for fiscal year 2019-20 was Rs 11,34,706.3 crore and that for fiscal year 2018-19 was Rs 11,68,048.7 crore.

The gross collection includes CIT of Rs 8,36,838.2 crore and PIT of Rs 7,10,056.8 crore.

Minor head wise collection (as at March 16, 2022), includes withholding tax of Rs 6,62,896.3 crore, tax withheld at source of Rs 6,86,798.7 crore, self-assessment of Rs 1,34,391.1 crore; regular assessment tax of Rs 55,249.5 crore; dividend distribution tax of Rs 7,486.6 crore and tax among other small heads of Rs 3,542.1 crore,” the statement said.

The cumulative withholding tax for the current fiscal year 2021-22 was Rs 6,62,896.3 crore on March 16, 2022, compared to Rs 4,70,984.4 crore for the corresponding period of the immediately preceding fiscal year.

This was 50.5 percent higher than Rs 4,40,281.4 crore pretax collection in FY 2019-20 and 31 percent more than Rs 5,06,714.2 crore mopped in 2018-19.

The pre-tax amount of Rs 6,62,896.3 crore includes CIT of Rs 4,84,451.8 crore and PIT of Rs 1,78,441.1 crore. “This amount is expected to increase as more information is expected from the banks,” the statement added.

Refunds of Rs 1,87,325.9 crore have also been issued so far in FY 2021-22.

This post Direct tax collection up 48% in FY22, tax prepayment up 41%

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