: Direct tax collection soars 48% in FY22 #finance #StockMarketNEWS #Business Press Trust of India New Delhi India’s collection from tax on personal and corporate income jumped over 48 per cent

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Direct tax collection soars 48% in FY22 #finance #StockMarketNEWS #Business
Press Trust of India

New Delhi

India’s collection from tax on personal and corporate income jumped over 48 per cent 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 collections 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 back, an official statement said.

The net collections 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 per cent 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 collections, the fourth installment 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 collections 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.

The rapid containment of Omicron, vaccination and declines in new infections helped the recovery.

“The figures of direct tax collections for the financial year 2021-22, as on March 16, 2022 show that net collections are at Rs 13,63,038. 3 crore compared to Rs 9,18,430. 5 crore over the corresponding period of the preceding financial year that is FY 2020-21, representing an increase of 48. 41%,�? the statement.

The net collection in the current fiscal registered a growth of 42. 50 per cent over the corresponding period of FY 2019-20 when the net collection was Rs 9,56,550. 3 crore, and a growth of 34. 96 per cent over the same 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 7,19,035. 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 FY 2021-22 (as on March 16, 2022) stood at Rs 15,50,364.