Direct Tax Collection Exceeds The Revised Budget Target

Direct tax collection exceeds the revised budget target in the last financial year, a substantial increase in advance tax collection.

India’s federal net direct tax, which mainly includes corporate and personal income tax, stood at Rs 9.45 lakh crore for the financial year ended 31 March. This exceeds the revised budget target.

A government official gave this information on Friday.

Pramod Chandra Modi, the head of the Central Board of Direct Taxes, told reporters on Friday in a virtual briefing, “Despite the challenges of the coronavirus epidemic, there has been an increase in net direct tax collections for FY 2020-21.”

As per the press release released by the Finance Ministry, the provisional direct tax collection for the financial year 2020-21 has registered an increase of about 5 percent.

It was told in the release that the total direct tax collection in the financial year 2020-21 has been 104.46 percent as compared to the revised estimate of 9.05 lakh crore.

Talking about Advance Tax collections, it has been Rs 4.95 lakh crore in the financial year 2020-21. In this way, it has increased by about 6.7 percent.

Of the net direct tax collections received in the last financial year, there is a corporate tax of Rs 4.57 lakh crore and personal income tax (PIT) including Security Transaction Tax (STT) is Rs 4.88 lakh crore.

The gross collection of direct tax (before adjusting for refunds) for FY 2020-21 stood at Rs 12.06 lakh crore. This includes a corporate tax of Rs 6.31 lakh and a personal income tax including STT of Rs 5.75 lakh crore.

According to the press release issued by the ministry, a refund of Rs 2.61 lakh crore has been issued in the financial year 2020-21.

Earlier, a refund of Rs 1.83 lakh crore was issued in the financial year 2019-20. In this way, there has been an increase of about 42.1 percent in refunds.