New Delhi: India's direct tax collection has registered a healthy growth of over 100% in the first eleven weeks of the current financial year as compared to the collection during the same period last year as the government collected over Rs 1,85,000 crores after deducting a refund amount of over Rs 30,000 crores, said the ministry of finance on Wednesday.
During the same period last year, the Centre has collected Rs 92,762 crores in direct taxes as the country was in a complete nationwide lockdown to slow down a community spread of deadly coronavirus – SarS-CoV-2, which was first discovered in the Wuhan region of China in November 2019. The direct tax collection of Rs 1,85,871 crores includes Corporation Tax at Rs 74,356 crore and Personal Income Tax, including Security Transaction Tax (STT), at Rs 1,11,043 crore, net of refunds.
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The gross direct tax collection, before adjustment of refunds, for the first eleven weeks of the current financial year stands at Rs 2,16,602 crores compared to Rs 1,37,825 crores during the same period of the previous financial year. The gross direct tax collection includes corporation tax at Rs 96,923 crore and personal income tax including security transaction tax (STT) at Rs 1,19,197 crore.
In the current financial year, the Finance Ministry has issued refunds of Rs 30,731 crore. “Net Direct Tax collections for the FY 2021-22 (April-March period) have grown at a robust pace despite the disruption caused by the COVID-19 pandemic on the economy,” said the Finance Ministry.
50% share in total tax collection
The Union government's direct tax collection accounts for half of the total tax collection which has been pegged at Rs 22.17 lakh crores for the current financial year. In her budget projections, Finance Minister Nirmala Sitharaman estimated the direct tax collection to be at 11.08 lakh crore in the current fiscal. The government collects corporation tax on the income of incorporated entities such as private and public limited companies, LLPs while personal income tax is collected on the income of individuals and firms.
Sharp spike in advance tax collection
According to the latest data shared by the Finance Ministry, the advance tax collection for the first 11 weeks of the current financial year was Rs 28,780 crores, an increase of nearly 146 per cent over the collection during the same period of the previous financial year. The government said this healthy growth in advance tax collection has been registered despite extremely challenging initial months of the new fiscal which began in April this year.
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The Centre has collected Rs 11,714 crore during the same period of last fiscal year when the country was under complete nationwide lockdown. Though the country witnessed a similar situation this year as well as several States imposed local lockdowns to contain a ferocious second Covid wave that killed nearly 1,70,000 people in just two months of April-May this year, more than half of the total Covid death toll in the country since the start of Covid-19 global pandemic in March last year.
However, local lockdowns imposed by States have not impacted the Centre's direct tax collection as severely as it was impacted during the same period last year due to a complete nationwide lockdown announced by Prime Minister Narendra Modi on March 24, 2020. The Finance Ministry said the advance tax collection of Rs 28,780 crores includes corporation tax at Rs 18,358 crore and personal income tax at Rs 10,422 crores. “This amount is expected to increase as further information is received from Banks,” said the Ministry.
TDS accounts for the biggest chunk
According to the data shared by the Central Board of Direct Taxes (CBDT), the tax deducted at source (TDS) accounts for the biggest chunk at Rs 1,56,824 crores, followed by an advance tax of Rs 28,780 crores, self-assessment tax of Rs 15,343 crores, regular assessment tax of Rs 14,079 crores, dividend distribution tax (DDT) of Rs 1086 crores and tax under other minor heads at Rs 491 crores.
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