InvestorQ : How are the government tax collections till date in the current financial year FY21-22?
Arusha Ray made post

How are the government tax collections till date in the current financial year FY21-22?

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2 months ago
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It appears to be a robust fiscal year for the government tax collections, based on the data flows till date. For instance, collection from tax on personal and corporate income were higher by 48% in the current fiscal to date. This is on top of a 41% growth in advance tax collections. Despite 2 waves of Coronavirus and a brief Omicron wave, the Indian economy has shown a lot of resilience in terms of revenue flows.

The reported net collections of direct taxes overall till the middle of March 2022 stood at Rs.13.63 trillion compared to just Rs.9.18 trillion in the comparable period last year. One can dismiss this growth saying that it is over a pandemic year. But more importantly, the growth is 35% over the fiscal year 2019-20 which represents the pre-pandemic period, so the growth in direct tax collections is real and also palpable.

These estimate are based on the latest advance tax collections data collated after the fourth and final instalment for the fiscal year 2021-22 had been paid by the due date of 15-March. The advance tax numbers for the March 15th deadline was 40.8% higher on a yoy basis at Rs.6.62 trillion. The robust tax collection numbers have been driven by a return of economic growth, an increase in income levels and better standards of tax compliance.

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