Despite poor economic conditions, direct tax collection doubles, crosses Rs 1.85 lakh crore

Some economists say that the good export situation and the pace of economic activity have helped in increasing the direct tax collection.

Despite the economic activities being badly affected due to the second wave of Corona, there has been an increase in the direct tax collection of the government. During the current financial year from April 1 to June 15, there has been a sharp increase in direct tax collection. According to the Income Tax Department, in the current financial year (2021-22), the net direct tax collections have more than doubled to Rs 1.85 lakh crore so far. The corporate income tax collection included in the net direct tax collection is Rs 74,356 crore. Personal income tax collection including security transaction tax stood at Rs 1.11 lakh crore. According to the CBDT statement, after adjusting tax refunds from April 1 to June 15, the net direct tax collection stood at Rs 1,85,871 crore as against Rs 92,762 crore in the corresponding period last year. That is, it has increased by 100.4 percent as compared to last year.

Gross direct tax collection Rs 2.16 lakh crore

Tax refund of Rs 30,731 crore has been done so far in the current financial year. The gross direct tax collection so far in the current financial year stood at Rs 2.16 lakh crore as against Rs 1.37 lakh crore in the same period last year. According to the statement, the total income tax stood at Rs 96,923 crore while the personal income tax stood at Rs 1.19 lakh crore. Advance tax collection Rs 28,780 crore. TDS stood at Rs 1,56,824 crore. Self assessment tax was Rs 15,343 crore and regular assessment tax was Rs 14,079 crore.

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Economists said, the current tax collection does not present the correct picture of the economy

Aditi Nayyar, Chief Economist, ICRA, said that the increase in direct tax collection in the first quarter is a result of better export conditions along with continuity in industrial and construction activities. But Rajat Mohan, Senior Partner, AMRG & Associates, said that this tax collection cannot be compared with the same period of the previous financial year as there was a period of lockdown during that time. There was a lot of uncertainty about the economy at that time. The economy had shrunk to double digits and the due date for filing tax returns was also extended.