Corporate tax collections grew 34 per cent through the present monetary yr until July 31, the Finance Ministry mentioned Friday, with out detailing absolutely the figures of the income collections.
“The corporate tax collections during FY 2022-23 (till 31st July, 2022) register a robust growth of 34% over the corporate tax collections in the corresponding period of FY 2021-22 @FinMinIndia,” the Income Tax Department mentioned in a sequence of tweets.
During 2021-22, company tax collections stood at Rs 7.23 lakh crore, a progress of over 58 per cent from 2020-21, it mentioned. “Even when compared to collections of FY 2018-19 (pre-COVID period), the collections of FY 2021-22 are higher by over 9 per cent. The positive trend of growth continues, but for the overall impact of the COVID-19 pandemic during FY2020-21, when the corporate tax collections took a temporary hit,” it mentioned.
This signifies that the “simplified tax regime with low rates and no exemptions has lived up to its promise”, it mentioned.
As per knowledge launched by the Controller General of Accounts, the company tax collections stood at Rs 1.46 lakh crore in April-July of the earlier monetary yr. As per newest authorities knowledge, in April-June, the federal government collected Rs 1.61 lakh crore as company tax, up 29.84 per cent year-on-year.
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Earlier within the day, some opposition leaders pointed to income loss by way of company tax reduce and linked it to the continuing debate of distribution of freebies by political events.
Under the brand new regime launched in September 2019, the company tax fee for all present firms was reduce to 22 per cent (with out surcharge and cess) from 30 per cent earlier. A tax fee of 15 per cent was introduced below Section 115BAB for newly included home firms, which make recent funding by March 31, 2023, for manufacturing, manufacturing, analysis or distribution of such articles or issues manufactured. This was prolonged by one yr on this yr’s Budget to March 31, 2024.
