Direct tax collection jumps by 47%, I-T Dept refunds Rs 75,000 crore

There is good news for the cash-starved government as its gross direct tax collection has registered a sharp increase of 47% as of Wednesday against the collection during the same period last year, writes, Krishnanand Tripathi, ETV Bharat.

New Delhi: There is good news for the cash-starved government as its gross direct tax collection has registered a sharp increase of 47% as of Wednesday against the collection during the same period last year. During the same period, the gross tax collection crossed the pre-Covid level witnessed in FY 2019-20 by 27%. During this period, the income tax department also issued refunds of over Rs 75,000 crore to the taxpayers.

The latest official data shared by the ministry of finance showed the net direct tax collection, which includes corporation tax, income tax and security transaction tax (STT), among others was over Rs 6.45 lakh crore as against the collection of over Rs 4.39 lakh crore in FY 2020-21, an increase of 47%.

The gross tax collection till September 22 of this year was up by more than 16% of the gross direct tax collection during the same period two years ago when the Covid-19 global pandemic had not hit the country. It was Rs 5.53 lakh crore during the same period of FY 2019-20.

The data also showed the net direct tax collection was over Rs 5.7 lakh crore as against the collection of over Rs 3.27 lakh crore in FY 2020-21, an increase of 74%. The net tax collection till September 22 this year was 27% more than the net tax collection during the same period two years ago at Rs 4.49 lakh crore.

The net direct tax collection of Rs. 5,70,568 crore includes corporation tax was Rs 3,02,975 crore after adjusting the refunds and personal income tax including security transaction tax (STT) was Rs 2,67,593 crore after adjustment of refunds.

Advance tax collection up by over 55%

During the same period, advance tax collection was over Rs 2.53 lakh crore, an increase of more than 55%.

As expected, the tax deducted at source (TDS) accounts for the biggest chunk of direct tax collection with the collection of over Rs 3.19 lakh crore, followed by the advance tax collection of Rs over Rs 2.53 lakh crore, self-assessment tax of Rs 41,739 crore, regular assessment tax of Rs 25,558 crore, dividend distribution tax (DDT) of Rs 4,406 crore and other minor heads at Rs 1383 crore.

In the case of advance tax collection, the income tax collected from companies accounts for the biggest chunk at nearly Rs 2 lakh crore while personal income tax accounts for Rs 56,389 crore. Officials said the amount was expected to be even higher as the latest information from the banks was awaited.

"Despite extremely challenging initial months of the fiscal year 2021-22, the Advance Tax collection in the second quarter (1st July 2021 to 22nd September 2021) of FY 2021-22 is Rs. 1,72,071 crore which shows a growth of 51.50% over the corresponding period in FY 2020-21 when the Advance Tax collection was Rs. 1,13,571 crore," said the government.

Income Tax refunds of Rs 75,111 crore issued

Though the last date to file the individual income tax returns for FY 2020-21 has been extended to the year-end due to the glitches in the new website of the income tax department, in the interim the department was able to issue refunds of Rs 75,111 crore to the taxpayers.