Net direct tax collection rises 50% to record Rs 13.81 trillion in FY22 | Business Standard News

Clipped from: https://www.business-standard.com/article/economy-policy/net-direct-tax-collection-rises-50-to-record-rs-13-81-trillion-in-fy22-122040200005_1.html

Gross mop-up touches record Rs 15.83 trn; exceeds Budget and revised estimates

Tax collections, taxes

Gross collection in FY22 touched Rs 15.83 trillion, which too is a historic high, according to the officials.

Direct taxes, comprising income tax and corporation tax, have broken all records and touched Rs 13.81 trillion in FY22.

Collection jumped more than 49 per cent over that of the previous fiscal year, mainly due to a low base effect. In FY21, net collection stood at Rs 9.23 trillion.

However, collection in FY22 is even higher by 34 per cent and 23 per cent over the pre-pandemic levels of FY19 and FY20. In FY20, net collection was Rs 10.28 trillion and in FY19 Rs 11.18 trillion.

Gross collection in FY22 touched Rs 15.83 trillion, which too is a historic high, according to the officials. This was mainly driven by corporation tax, which as on March 31stood at Rs 8.48 trillion and personal income tax added Rs 7.08 trillion. Refunds aggregating Rs 2.01 trillion were issued last fiscal year.

Gross collection in FY21 was Rs 11.55 trillion, and that for FY20 and FY19 was Rs 12.11 trillion and Rs 12.79 trillion, respectively.

The direct tax mop-up even exceeded the Budget estimate of Rs 11.08 trillion and even the revised estimate of Rs 12.50 trillion, presented by Finance Minister Nirmala Sitharaman on February 1.

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The spread of the pandemic and the ensuing restrictions had affected business in 2020-21.

Towards the end of the fiscal year, the economy had started to recover from the impact but was hit again by a second wave in April-May and a third wave in December-January.

The rapid containment of Omicron, vaccination, and declines in new infections helped the recovery.

Advance tax collection, particularly the fourth instalment of which was due on March 15, rose to Rs 6.62 trillion, up 40.75 per cent, the Central Board of Direct Taxes said.

Securities transaction tax (STT) also showed a sharp increase. Collection was over Rs 23,000 crore, breaching the revised estimate of Rs 20,000 crore.

Cumulative advance tax collection was Rs 4.70 trillion for the corresponding period of the preceding fiscal year.

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