Financial sector companies,led by life insurance giant LIC and private lender HDFC Bank,today posted a healthy increase in their second quarter advance tax payout belying sluggishness in the economy.
Life Insurance Corporation (LIC) paid an advance tax of Rs 1,300 crore,compared to Rs 1,165 crore it had paid in the second quarter of last fiscal,income tax officials said here.
HDFC Bank’s tax payment increased to Rs 1,100 crore from Rs 800 crore last year while its larger rival ICICI Bank saw its second quarter advance tax outgo jump to Rs 815 crore from Rs 650 crore,an official said.
Advance tax is a staggered way of paying income taxes through the year and is generally taken as a barometer to corporate earnings for the period.
The deadline for filing the advance tax returns for the second quarter is September 15 and more companies are expected to make their tax payments tomorrow.
State-run lender Bank of Baroda’s second quarter tax outgo went up to Rs 620 crore from Rs 600 crore while Dena Bank’s payments saw impressive jump to Rs 180 crore against Rs 77 crore it paid last year,officials said.
Payments from foreign banks also displayed a jump with Citi leading the way with Rs 400 crore,about Rs 100 crore more over the the amount paid last year,they said.
Among other sectors,FMCG giant Hindustan Unilever’s tax outgo rose to Rs 300 crore from Rs 190 crore while for Ambuja Cement,it jumped to Rs 160 crore from Rs 95 crore in the corresponding period last year,they said.
Auto major Mahindra & Mahindra saw its advance tax payments increase to Rs 200 crore from Rs 176 crore,they added.