In a positive development, the direct tax collection in FY 2020-21 has exceeded the revised estimates as announced in the recent Budget, signalling a recovery in the economy of the nation.
The direct tax collections stood at Rs 9.18 lakh crore on 16th March 2020, which is about Rs 18,000 crore higher than Union Finance Minister Nirmala Sitharaman’s announcement.
Notably, the finance ministry has approximated corporate tax collections of around Rs 4.46 lakh crore. However, the figures shot up by 7 per cent to reach Rs 4.7 lakh crore on 16th March. The overall rise is mainly led by the rise in advance tax collections from companies.
The all-inclusive direct tax collection of 9.18 lakh crore, though higher than the revised estimates, still falls 4 per cent short as compared to the year-ago figure. Yet, it marks a significant improvement from the 20 per cent nosedive witnessed during the early parts of the year amidst the Covid-19 pandemic.
On the other hand, the income tax collection of Rs 4.21 lakh crore has failed to meet the revised evaluation of Rs 4.59 lakh crore. But, the tax authorities are anticipating their collections to increase remarkably with two weeks still remaining in this fiscal year.
The Mumbai, Delhi, and Bengaluru circles have bagged direct taxes of Rs 3.03 lakh crore, Rs 1.18 lakh crore, and Rs 1.15 lakh crore as of March 16th. Mumbai and Bengaluru recorded growth in collections of 3.5 per cent and 10.4 per cent on a year-on-year basis.
Apparently, their performance is credited to enhanced compliance coupled with the rousing performance of the software sector, Indian Express reports. However, the Delhi circle marked a major decline of 15.2 per cent from a year ago mainly because of the fact that national capital hosts several smaller firms and informal sector establishments.
Furthermore, a positive revenue expectation of India Inc across several sectors is slated to further lift the direct tax collections.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.