Direct tax mop-up rises to Rs 1.85 lakh crore on low base, export gains

The Centre’s net direct tax collections stood at Rs 1,85,871 crore as on June 15 this fiscal, double the level in the year-ago period, thanks to a low base, a pick-up in exports, better compliance and lower refunds. Advance tax collections during the first quarter of FY21 were Rs 28,780 crore, up 146 per cent on year, as the June 15 deadline passed.

The advance tax mop-up, a reflection of corporate profitability, is still way below the level FY20, the year before Covid ravaged the economy. Tax payers have to deposit 15 per cent of their estimated annual taxes as advance tax in the first quarter of a fiscal year.

“We are cautiously optimistic at this stage. Direct tax numbers not only speak of the strong and system bound foundations of the tax department but also resilience of many sectors of the economy which stood up to the current challenges,” Central Board of Direct Taxes (CBDT) chairman JB Mohapatra said. —FE