An Indian five hundred rupee banknote is arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Direct Tax Collections Jump Nearly 16% In April-September

India’s direct tax collections for April-September rose 15.8 percent to Rs 3.86 lakh crore, buoyed by a healthy growth in advance tax mop-up.

The net direct tax collections constitute 39.4 percent of the total Budget estimate of direct taxes at Rs 9.8 lakh crore for the current fiscal.

The provisional figures of direct tax up to September 2017 show that net collections stood at Rs 3.86 lakh crore which is 15.8 percent higher than the corresponding period last year, the Central Board of Direct Taxes said in a statement.

Advance tax collections till September stood at Rs 1.77 lakh crore, reflecting a growth of 11.5 percent over the corresponding period a year ago.

The growth in corporate income tax advance tax is 8.1 percent, and that in personal income tax advance tax is 30.1 percent. Refunds amounting to Rs 79,660 crore have been issued during April-September 2017.

The growth in corporate income tax “indicates some resilience and momentum, and is perhaps an outcome of the phasing out of many incentives”, Abhishek Goenka, partner and leader of corporate and international tax at PwC India said in an emailed statement. “However, this growth could be pared downwards by the end of the year,” he cautioned.

Gross direct tax collections (before adjusting for refunds) have increased by 10.3 percent to Rs 4.66 lakh crore during April - September, 2017.

Also Read: NPA-Laden State-Run Banks Crimp Advance Tax Collection At 10.6%

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