“The reduction was expected in the later part of June, and the sudden drop is a response to the advance tax outflow,” Sakshi Gupta, principal economist at HDFC Bank, said.
“The liquidity should stabilize in the next 10-15 days, after both advance tax payments, and Goods and Services tax payments, “a dealer at a state-owned bank said. “I don’t believe it would go into deficit.”
An individual or a corporate entity owing Rs 10,000 or more in taxes for the year are required to pay advance tax. However, individuals who do not earn income from a business or profession are not obligated to pay advance tax. The advance tax is divided into four separate payments in a financial year, with the first installment due on June 15th.
First Published: Jun 20 2023 | 4:49 PM IST
