economy

Net direct tax collection jumps 60% annually to Rs9.45 trillion

Net direct tax collection jumps 60% annually to Rs9.45 trillion

NEW DELHI : Net direct tax collection of the central government so far this year has touched ₹9.45 trillion, growing 60.8% from the year ago period, finance ministry said in a statement on Friday. The latest figure as on 16 December represents the direct tax receipts after the third of the four instalment of annual advance tax collections which fall due in June, September, December and March. The net direct tax receipts so far this year also shows a growth of 40% compared to the comparable period in the pre-pandemic year of FY20. The Income Tax department gave Rs. 1.35 trillion in tax refunds so far this year. Net tax collections include ₹5.15 trillion in corporate tax and ₹4.29 trillion in personal income tax which includes security transaction tax. Before adjusting for refunds, the gross direct tax collection stood at Rs. 10.8 trillion compared to Rs. 7.3 trillion in the corresponding period of the preceding financial year. The government has a target of ₹11 trillion in gross direct tax receipts for FY22. The growth in direct tax collections is expected to be a relief to the central government which recently reduced taxes on petrol and diesel to give relief to consumers in the wake of rising global fuel prices. Tax revenue growth is significant as far as government’s fiscal position is concerned given the uncertainties around achieving the ₹1.75 trillion target set for stake sale in state run companies. The government, however, is pursuing the stake sale target actively. On the indirect tax side, Goods and Services Tax (GST) collections too have been showing a healthy trend due to pent up demand and festive season consumption. The cumulative advance tax collections for the first, second and third quarter of the FY22 stand at Rs. 4.59 trillion as on 16 December compared to Rs. 2.9 trillion for the corresponding period of FY21, showing a growth of 53.5%, the ministry said. Download.

economy 2021-12-18 Livemint