The banking, financial services and insurance (BFSI) sector, led by the Life Insurance Corporation of India, has reported a healthy rise in advance tax outgo in the first quarter of the current fiscal, according to Income Tax Department sources here on Friday.
The advance tax outgo of LIC went up to Rs.679 crore from Rs.638 crore in the year ago period, while that of ICICI Bank moved up to Rs.600 crore from Rs.500 crore, sources said.
Deposit Insurance and Credit Guarantee Corporation paid Rs.611 crore (Rs.440 crore).
State Bank of India and Reliance Industries are yet to pay the first instalment of the annual tax outgo, sources said, pointing out that Saturday is the last day for the payment.
Advance tax payment is generally considered as a barometer of a company’s performance. Corporates pay about 15-18 per cent of their tax liability in the June quarter.
When asked for the overall picture, a senior official said that it was difficult to analyse the trend as payments of many corporates were yet to come. “Overall, they seem to be okay,” he said.
HDFC Bank paid Rs.685 crore as compared to Rs.500 crore in the year ago period, while its parent, HDFC, paid Rs.360 crore (Rs.300 crore).
Bank of Baroda paid Rs.325 crore (Rs.315 crore), while Central Bank of India’s outgo jumped to Rs.167 crore (Rs.140 crore).
Auto major Bajaj Auto, has led the pack with a payment of Rs.160 crore (Rs.150 crore). Mahindra and Mahindra paid Rs.120 crore (Rs.90 crore).
Tata Steel’s outgo remained flat at Rs.270 crore, sources said.