India’s direct tax collections in the first two and a half months of 2021-22 stand at nearly ₹1.86 lakh crore, double the collections over the same period of last year that was affected by the national lockdown, the Finance Ministry said on Wednesday.
Economists said the tax collections suggest the first quarter of this year could record double-digit growth.
"The jump in the direct tax collections in Q1 FY2022 relative to Q1 FY2021, reflects healthy exports and a continuation of various industrial and construction activities, given the lower stringency of the staggered regional lockdowns in 2021 vs. the nationwide lockdown in 2020. This supports our expectation that GDP will record a double-digit expansion in Q1," said Aditi Nayar, chief economist at rating agency ICRA.
The direct collections from April 1 to June 15 include Corporation Tax collections of ₹74,356 crore and Personal Income Tax inflows, which include the Security Transaction Tax of ₹1.11 lakh crore. The collections last year over the same period were ₹ 92,762 crore.
“Despite extremely challenging initial months of the new fiscal, the Advance Tax collections for the first quarter of 2021-22 stand at ₹28,780 crore against Advance Tax collections of ₹11,714 crore for the corresponding period of the immediately preceding Financial Year, showing a growth of approximately 146%,” the Finance Ministry said.
The advance tax kitty includes ₹18,358 crore as Corporation tax and Personal income tax of ₹10,422 crore. “This amount is expected to increase as further information is received from Banks,” the ministry added. So far, tax refunds of about ₹30,731 crore have been issued this financial year.
