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Direct Tax Mop-up Doubles to Rs.1.86 Lakh crore

Advance tax collection for the first quarter rose 146% to Rs.28.780 crore from a year ago while overall net direct tax collection more than doubled to Rs. 1.86 lakh crore, according to data up to June 15 released by the government. The strong growth in direct tax collections indicates high economic growth in the quarter while the rise in advance tax collection point to strong recovery expectation going a head.

Tax experts said the government’s Vivad-se-Vishwas dispute settlement scheme may have also boosted collection. The finance ministry said expect the amount to increase more data is received from banks on collection. “The supports our expectation that GDP will record a double -digit expansion in Q1 FY2022,” said Aditi Nayar, chief economist at ratings agency ICRA. Taxpayers have taken advantage of the Vived se Vishwas scheme, said Neeru Ahuja, partner, Deloitte India, “This seems to be the main reason we are noticing a boost in the direct tax collection,”

Net direct tax mop-up for the first quarter last year was Rs.92,762 crore.

ADVANCE TAX: Advance tax is paid by companies and individuals in four instalment through the year. The first comprises 15% of evaluated tax liability in the first quarter.  S-ET

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