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

The Centre’s web direct tax collections stood at Rs 1,85,871 crore as on June 15 this fiscal, double the extent within the year-ago interval, due to a low base, a pick-up in exports, higher compliance and decrease refunds. Advance tax collections in the course of the first quarter of FY21 have been Rs 28,780 crore, up 146 per cent on yr, because the June 15 deadline handed.
The advance tax mop-up, a mirrored image of company profitability, remains to be method beneath the extent FY20, the yr earlier than Covid ravaged the financial system. Tax payers should deposit 15 per cent of their estimated annual taxes as advance tax within the first quarter of a fiscal yr.
“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 mentioned. —FE