Net Direct Tax collections see 74.4% growth over pre-pandemic levels

New Delhi, Sep 24 (IANS) In a clear signal that the economy is on path of fast recovery post the pandemic disruptions, the government's net direct tax collections for FY22 so far (till September 22) have grown by a staggering 74.4 per cent to Rs 5,70,568 crore, compared to Rs 3,27,174 crore in the corresponding period of preceding FY21.

Though not comparable as last year tax collections were impacted by Covid 19 virus outbreak, yet the current years tax collections is even higher by 27 per cent over the pre-pandemic period of FY 20 when the net collection was Rs 4,48,976 crore.

The net direct tax collection of Rs 5,70,568 crore this year include corporation tax (CIT) at Rs 3,02,975 crore (net of refund) and personal income tax (PIT), including security transaction tax (STT) at Rs 2,67,593 crore (net of refund).

The gross collection of direct taxes (before adjusting for refunds) for the FY 2021-22 stands at Rs 6,45,679 crore compared to Rs 4,39,242 crore in the corresponding period of the preceding financial year, registering a growth of 47 per cent over collections of FY 2020-21. The gross collection (as on September 22) in FY 2021-22 has registered a growth of 16.75 per cent over FY 2019-20 when the gross collection was Rs 5,53,063 crore.

The gross collection of Rs 6,45,679 crore includes CIT at Rs 3,58,806 crore and PIT, including STT, at Rs 2,86,873 crore.

Minor head wise collection comprises advance tax of Rs 2,53,353 crore, tax deducted at source of Rs 3,19,239 crore, self-assessment tax of Rs 41,739 crore, regular assessment tax of Rs 25,558 crore, dividend distribution tax of Rs 4,406 crore and tax under other minor heads of Rs 1,383 crore.

Despite extremely challenging initial months of the fiscal year 2021-22, the advance tax collection in the second quarter (July 1, 2021 to September 22, 2021) of FY 2021-22 is Rs 1,72,071 crore which shows a growth of 51.50 per cent over the corresponding period in FY 2020-21 when the advance tax collection was Rs 1,13,571 crore.

The cumulative advance tax collections for the first and second quarter of the FY 2021-22 stand at Rs 2,53,353 crore, as on September 22, against advance tax collections of Rs 1,62,037 crore for the corresponding period of the immediately preceding Financial Year i.e 2020-21, showing a growth of 56 per cent (approximately).

Further, the cumulative advance tax collection of Rs 2,53,353 crore, as on September 22 (FY 2021-22) shows a growth of 14.62 per cent over the corresponding period in FY 2019-20 when the advance tax collection (cumulative) was Rs 2,21,036 crore.

The advance tax collection of Rs 2,53,353 crore, as on September 22, comprises CIT at Rs 1,96,964 crore and PIT at Rs 56,389 crore. This amount is expected to increase as further information is awaited from banks.

Refunds amounting to Rs 75,111 crore have also been issued in the FY 2021-22 so far.