Despite the worse condition due to COVID-19 which impacted economic growth, the net direct tax collection has doubled to over Rs 2.49 lakh crore so far this fiscal, mainly driven by personal income tax and advance tax mop up, Income Tax department sources told ANI.
The net direct tax collections between April 1 and July 3 stood at Rs 2.49 lakh crore, compared to Rs 1.29 lakh crore over the corresponding period of the preceding year, representing an increase of 91 per cent over the collections of the preceding year. Net Direct Tax collections for the financial year (FY) 2021-22 have grown at a robust pace despite the disruption caused by the COVID-19 pandemic on the economy.
The gross collection of Direct Taxes (before adjusting for refunds) for the FY 2021-22 stands at Rs 2.86 lakh crore compared to Rs 1.94 lakh crore in the corresponding period of the preceding year. This includes Corporation Income Tax (CIT), Personal Income Tax (PIT), Security Transaction Tax (STT) and advanced tax. This amount is expected to increase as further information is received from banks.
Commenting on the direct tax collection trends Income Tax department sources said collection figures are encouraging and the department is cautiously optimistic to achieve the Budget target set by Union Finance Minister Nirmala Sitharaman. He added that transparent and fair taxation system gives us the confidence, apart from revival of the economic activity, despite the difficult times, that we will be able to achieve the current target. The target for current fiscal has been set at Rs 11.08 lakh crore.
Commenting on the direct tax collection, Neeru Ahuja, Partner, Deloitte India said, “These are clearly positive outcomes of an economy getting back on track. Business optimism and the many compliance tracking initiatives taken by the tax authorities.”
Earlier Central Board of Direct Taxes (CBDT) in a statement said Income Tax department has issued refunds of over Rs 37,050 crore to more than 17.92 lakh taxpayers between April 1, 2021 to July 5, 2021. Income tax refunds of Rs 10,408 crore have been issued in 16,89,063 cases and corporate tax refunds of Rs 26,642 crore have been issued in 1,03,088 cases.