The trend of growth in income tax collection is expected to continue in the coming months as well. This is because compliance has improved, corporate profits have increased and business has increased during the festive season.
The trend of growth in income tax collection is expected to continue in the coming months as well.
The trend of growth in income tax collection is expected to continue in the coming months as well. This is because compliance has improved, corporate profits have increased and business has increased during the festive season. Experts believe so. Corporate tax and personal income tax collections have seen an increase during the current financial year due to increased economic activities in the country. Gross direct tax collection grew by 30 per cent to Rs 8.36 lakh crore in the mid-April to September period.
Corporate tax return numbers down
Corporate tax returns for the quarter are yet to be filed. But a strong trend in advance tax collections indicates an increase in collections. Sudhir Kapadia, Partner, Tax and Regulatory Services, EY India, said profitable growth of the corporate sector has picked up, partly due to higher consumer prices due to higher inflation. He said that due to the overall growth of India’s economy and increasing digitization of tax administration, a large part of the economy is continuously coming under the tax net.
The direct tax collection of Rs 8.36 lakh crore received between April 1 and September 17 includes corporate tax of Rs 4.36 lakh crore and personal income tax of Rs 3.98 lakh crore. Even after deducting the refunds issued to the tune of Rs 1.35 lakh crore from this total amount, the net direct tax collection stands at Rs 7 lakh crore with an increase of 23 per cent.
What do experts say?
Amit Singhania, Partner, Shardul Amarchand Mangaldas & Co, said that looking at the coming festive season, it can be said that the trend of increase in tax collection is going to continue. However, there is also a risk of an increase in prices both domestically and globally. Rajat Mohan, Senior Partner, AMRG & Associates, said that the introduction of crypto tax has increased the number of taxpayers and widened the tax base, resulting in an increase in tax collection.
Let us tell you that economic activities have still not reached the pre-pandemic level. Therefore, the Reserve Bank of India can slow down the pace of increase in policy rates. This has been estimated in the latest report of the Asian Development Bank (ADB).
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