Personal and business income tax revenues rose nearly 50 percent so far this year, and pre-tax payments rose more than 40 percent, underscoring the healthy economic recovery from the two-wave coronavirus infection pandemic.
This should give the government a breather after pushing for the Initial Public Offering (IPO) of the Life Insurance Corporation (LIC) to fund its spending plans from March onwards. However, it may still come in April.
The escalation of the Russia-Ukraine conflict has hit the financial markets, with uncertainty prompting the government to delay the long-awaited mega IPO of the LIC.
Net direct tax revenues as of March 16, 2022, which began on April 1, 2021 in the current fiscal year, were $ 13.63 billion over the same period of the year, up from $ 9.18 billion, the CBDT statement said.
The Central Direct Tax Commission (CBDT) has named President JB Mohapatra the Department of Income Tax as the largest collection in history.
“In the last four-year block, the number of net collections is the highest. The previous high exceeded 2.5 billion. This is the highest amount of income tax collection in the department’s history to date,” CBDT said. President JB Mohapatra told PTI.
Net direct tax collection, which is made up of personal income tax, corporate income tax, real estate tax, real estate tax, inheritance tax and gift tax, is 35 percent higher than the current 9.56 lakh tax collection. yes. billion in the 2019-20 pandemic of the previous year (April 2019 to March 2020).
Advanced tax revenue, the fourth installment of which was paid on March 15, rose to 6.62 billion, an increase of 40.75 percent.
Almost 53% of the total direct tax collection was due to Corporate Income Tax and 47% to Personal Income Tax, including the Share Value Transaction Tax (STT).
The collection of direct taxes exceeded the budget of more than 11.08 billion before the start of the fiscal year and the revised estimates in the 2022-23 2022-23 budget of Finance Minister Nirmala Sitharaman presented on February 1 exceeded 12.50 lakh million.
The spread and consequent reduction of the pandemic affected business activities in 2020-21. Towards the end of that fiscal year, the economy was starting to recover from the impact, but in April-May 2021 it was the second wave and the third newer wave again.
Omicron’s rapid containment, vaccinations and a drop in new infections contributed to the recovery.
“The direct tax collection figures for 2021-22 on March 16, 2022 show that net income was 13,63,038.3 million, compared to 9,188,430.5 million in the previous year, an increase of 48.41 percent in FY 2020-21. it means, ”he notes.
The current net tax revenue increased by 42.50 per cent for the corresponding period of 2019-20, when net revenue was 9,56,550.3 million, and an increase of 34.96% over the same period of 2018-19. net income was $ 10,089,982.9 million.
Net direct tax revenue includes corporation tax (CIT) of 7.19,035.0 million (net refund) and Personal Income Tax (PIT), including STT of 6,40,588.3 million (net refund).
For the 2021-22 fiscal year (March 16, 2022), gross direct tax revenue (before adjusting refunds) was $ 15.50,364.2 million, compared to $ 11.20,638.6 million in the prior year.
The gross revenue for the 2019-20 financial year was 11,34,706.3 million and for the 2018-19 financial year it was 11,68,048.7 million.
Gross revenue includes a CIT of Rs 8,336,838.2 crore and a PIT of Rs 7,10,056.8 crore.
“Small headcount (as of March 16, 2022) includes a pre-tax of 6,682,896.3 million, a tax originally deducted of 6,886,798.7 million, a self-assessment tax of 1,34,391.1 million; 55,249.5 million; the tax on the distribution of dividends is 7,486.6 million and the tax on other small heads is 3,542.1 million, ”the statement said.
The cumulative collection of tax advances for the current fiscal year 2021-22 was 6,682,896.3 million on March 16, 2022, and immediately amounted to 4,70,984.4 million in the previous year.
This was 50.5 percent more than the pre-tax collection of 4,40,281.4 million in the 2019-20 fiscal year, and 31 percent more than the 5,06,714.2 million in 2018-19.
The advanced tax figures of 6,682,896.3 million make up the CIT of 4,84,451.8 million and the PIT of 1,788,441.1 million. “This figure is expected to increase as more information is expected from banks,” the statement added.
To date, 1,87,325.9 million euros have also been paid in 2021-22.