India Markets closed

Direct tax growth just a third of target

FE Bureau
The mop-up so far in FY20 has come in at Rs 4.5 lakh crore, just about 6% higher than collections a year ago

Against a full-year growth target of 17.4% for direct tax collections, the mop-up (net of refunds) between April 1, 2019, and September 17, 2019, this fiscal has come in at Rs 4.5 lakh crore, just about 6% higher than collections in the same period a year ago, sources said. Refunds amounting to Rs 1 lakh crore have been disbursed during this period, which is about the same as last year.

The total advance tax collected during this period stood at Rs 2.2 lakh crore which is 7.3% more than the year-ago period. During the same period last year, the advance tax collection had grown by 18%.

Corporate assessees and certain categories of individual taxpayers are required to pay 45% of advance tax by September 15, which is the second of the four instalments in a year. Advance tax paid by corporate taxpayers is nearly six times that of other categories.

The Budget estimate for direct tax collection (net of refunds) in the current fiscal has been pegged at Rs 13.35 lakh crore. The target was reduced from the level estimated in the Interim Budget presented in February, prompted by a shortfall of over Rs 60,000 crore in direct tax revenue from `12 lakh crore target set in the last fiscal.