Centre’s advance taxes up a third to Rs 1 trillion in Q1

Aided by revival of economic activities and better compliance, the Centre’s advance direct tax collections from companies, LLPs and individuals rose by 33% on year to about Rs 1.01 trillion in Q1FY23.

Till June 16 of the current financial year, net direct tax collections (post-refunds) stood at Rs 3.39 trillion, up 45% on year, and up 171% over the same period in FY21 and 103% over the corresponding period in FY20.

The required annual growth rate to achieve the full-year net direct tax collection target of Rs 14.2 trillion in FY23 is just 2.5% over the actual collections in FY22.

The last date of payment of first quarter advance tax was June 15, but some amounts continue to trickle in for a few more days.

The net direct tax collections are poised to exceed the FY23 target by as much as Rs 2 trillion, analysts reckon.

The advance tax collections in June quarter stood at Rs 1.01 trillion compared with about Rs 75,783 crore in the year ago period.

This comprises corporation tax at Rs 78,842 crore and personal income tax at Rs 22,175 crore.

“This amount is expected to increase as further information is received from banks,” the central board of direct taxes (CBDT) said.

The gross direct tax receipts (before refunds) stood at Rs 3.7 trillion, up 40% over the collections of the preceding year.

This includes corporation tax at Rs 1.91 trillion and personal income tax including security transaction tax at Rs 1.78 trillion.

Minor head wise collection comprises advance tax of Rs 1.01 trillion, tax deducted at source of Rs 2.3 trillion (y-o-y growth of 46%), self-assessment tax of Rs 21,849 crore (y-o-y growth of 41%), regular assessment tax of Rs 10,773 crore, tax on distributed profits of Rs 5,529 crore and tax under other minor heads of Rs 715 crore.

Refunds amounting to Rs 30,334 crore have also been issued so far in FY23, the CBDT said.

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