Advance tax mop-up grew 17% between April-Sept to Rs 2.95 trillion

The advance tax collection, both corporation and personal, grew 10.1 year-on-year to Rs 1,92,600 crore in the second quarter of FY23, according to official sources.

The corporation advance tax mop-up in July-September stood at Rs 1,49,242 crore, against Rs 1,35,347 crore in the corresponding period a year ago — up 10.2 per cent. Advance personal income tax collection, on the other hand, was 9.5 per cent higher at Rs 43,358 crore, against Rs 39,592 crore a year ago.

The cumulative advance tax collection between April 1 and September 17 this year, comprising both first and second instalments, surged 17 per cent to surpass Rs 2.95 trillion, against Rs 2.52 trillion during the year-ago period, according to the data released by the Central Board of Direct Taxes (CBDT) on Sunday.

The government attributed the “robust collection” to the revival of economic activity after the pandemic, stable policies focusing on simplification and streamlining of processes, and plugging of tax leakages through effective use of technology.

Advance tax is paid as and when the money is earned in four instalments, rather than at the end of the fiscal year.

It is considered to be an indication of economic sentiment. The first instalment, or 15 per cent of advance tax, is to be paid by June 15, the second by September 15 (30 per cent), the third by December 15 (30 per cent), and the rest by March 15.

Net direct tax collection (net of refunds) for the current fiscal year grew 23 per cent to over Rs 7 trillion between April 1 and September 17, from Rs 5.68 trillion a year ago. This included corporation tax collection at Rs 3.68 trillion and personal income tax, including Securities Transaction Tax (STT), mop-up of over Rs 3.30 trillion.

Gross collection (before adjusting for refunds) for the ongoing fiscal year was up 30 per cent to Rs 8.36 trillion, from Rs 6.42 trillion a year ago.

Head-wise collection consists of advance tax of Rs 2,95,308 crore, tax deducted at source (TDS) of Rs 4,34,740 crore, self-assessment tax of Rs 77,164 crore, regular assessment tax of Rs 20,080 crore, and tax under other minor heads at Rs 8,933 crore.

The CBDT stressed the remarkable increase in the speed of processing of income tax returns filed during the current fiscal year, with almost 93 per cent of the duly verified ITRs having been processed until Sunday.

It said the fast processing of ITRs has resulted in faster issue of refunds with almost a 468 per cent increase in the number of refunds issued in FY23, thus far.

Data suggests that refunds amounting to Rs 1.35 trillion have been issued so far, as against refunds of Rs 74,140 crore issued during the corresponding period in the preceding fiscal year, showing over 83 per cent growth.

Rs in crore
Advance tax mop-up
Corporate adv tax 295,308.00
Personal Adv tax 66,176.00

Rs in crore
Total direct tax collections Growth
Gross 836,225.00 30
Refunds 135,556 83
Net 7,00, 669 23

Note: Figures between April 1 and Sep 17 of the current fiscal year (FY23) Source: CBDT

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