Tax Collection Will Increase Continuously In The Coming Month

In the coming months, it is expected that the growth in income tax collection will continue. This will happen due to the ease of compliance and increasing profits of companies as well as the increase in business during the festive season. Corporate tax and personal income tax (PIT) have also shown an increase due to increased economic activity.

Rohinton Sidhwa, Partner, Deloitte India, said that the reason for the increase in tax is the direct effect of the easing of compliance is also reflected in the income tax returns. The corporate tax return for the previous financial year is still to be filed. Earnings of companies are reflected in the strong trend of advanced tax collection.

Sudhir Kapadia, Partner, EY India Tax and Regulatory Services, said the increase in consumer prices due to higher inflation has helped to some extent. Strong gains in PIT suggest that personal income is on the rise as well as proprietorship and partnership businesses. 

Gross direct tax collection from April to mid-September this year stood at Rs 8.36 lakh crore, an increase of 30 percent over the same period a year ago. Rs 4.36 lakh crore was corporate tax while Rs 3.98 lakh crore was PIT. However, Rs 1.35 lakh crore of tax was also refunded in this, taking the net collection to Rs 7 lakh crore. The growth on this basis was 23 percent. At present, the average GST collection is Rs 1.40 lakh crore every month.