The government is reaping a bumper harvest from tax collections in the ongoing financial year ending March 2022. Direct tax collections for FY 22 have risen 47 percent on-year to Rs 6.45 lakh crore as of September 22, with net collections having risen 74 percent on-year to Rs 5.7 lakh crore and advance tax collections up by 65 percent to Rs 2.53 lakh crore.
The Central Board of Direct Taxes (CBDT) said Friday that refunds of Rs 75,111 crore have been issued so far. "The figures of Direct Tax collections for the Financial Year 2021-22, as of 22.09.2021 show that net collections are at Rs. 5,70,568 crores, compared to Rs. 3,27,174 crores in the corresponding period of the preceding Financial Year i.e FY 2020-21, representing an increase of 74.4 percent," the Board said.
Net collections for FY22 are 27 percent higher than Rs 4.49 lakh crore in FY 20. The Covid 19 pandemic affected tax collections in FY 21. The gross collection of direct taxes, before adjusting for refunds, for the FY 2021-22 stands at Rs 6,45,679 crore compared to Rs. 4,39,242 crores in the corresponding period of the preceding financial year, registering a growth of 47 percent.
The gross collection FY 2021-22 has registered a growth of 16.75 percent over FY 2019-20 of Rs. 5,53,063 crores, for the same time period. The gross collection of Rs. 6,45,679 crore includes CIT at Rs. 3,58,806 crore and PIT along with STT at Rs. 2,86,873 crores. Gross collections include advance tax of Rs. 2,53,353 crores; tax deducted at source of Rs. 3,19,239 crores; self-assessment tax of Rs. 41,739 crores; regular assessment tax of Rs. 25,558 crores; dividend distribution tax of Rs. 4,406 crore and tax under other minor heads of Rs. 1383 crore.
"Despite extremely challenging initial months of the fiscal year 2021-22, the Advance Tax collection in the second quarter (1st July 2021 to 22nd September 2021) of FY 2021-22 is Rs. 1,72,071 crore which shows a growth of 51.50 percent over the corresponding period in FY 2020-21 when the Advance Tax collection was Rs. 1,13,571 crores," the Board said.
The cumulative advance tax collections for the first and second quarter of the FY22 stand at Rs. 2,53,353 crores as of 22.09.2021, against advance tax collections of Rs. 1,62,037 crores for the corresponding period FY21 showing a growth of 56 percent.