Economic Recovery Gaining Strength? Govt's Advance Corporate Tax Collection Zooms 49 Per Cent To Rs 1.09 Lakh Crore In Q3

Economic Recovery Gaining Strength? Govt's Advance Corporate Tax Collection Zooms 49 Per Cent To Rs 1.09 Lakh Crore In Q3Prime Minister Narendra Modi with Finance Minister Nirmala Sitharaman.

In a major sign that the economic recovery is fast gaining strength, the advance tax paid by companies has jumped up by a massive 49 per cent to Rs 1,09,506 crore in the ongoing third quarter of the fiscal year, reports Economic Times citing a source at the Central Board of Direct Taxes (CBDT).

During the same quarter last fiscal, the corporate advance tax payments stood at Rs 73,126 crore. The 49 per cent jump over this figure despite the COVID-19 pandemic has taken the overall advance corporate tax collected so far to Rs 2,39,125 crore. This is only 4.9 per cent down from the Rs 2,51,382 crore collected in the last fiscal by the third quarter.

Meanwhile, the advance tax collections on the personal taxation front have recorded a 5.6 per cent decline in the ongoing third quarter, down from Rs 32,910 crore to Rs 31,054 crore. The total advance personal income tax collections for the fiscal stand at Rs 60,491 crore, which is 10.4 per cent down from Rs 67,542 crore.

Combined, gross tax collection for the fiscal so far stands at Rs 7,33,715 crore. Meanwhile, with Rs 1,46,109 crore of refunds processed by the CBDT, the net tax mop-up so far stands at Rs 5,87,605 crore. It should be noted that the refunds this year is 8.1 per cent less than Rs 1,58,988 crore refunded by the third quarter of previous fiscal.