Gross direct tax collections rise 16.7% to Rs. 5.47 trillion in Apr-Sept

Gross direct tax collection rose 16.7 per cent year-on-year to Rs 5.47 trillion in the first six months of 2018-19.

With record income tax refunds crossing Rs 1 trillion in the April-September period, the net collections stood at Rs 4.44 trillion, 14 per cent higher than the previous year.

These net collections in six months form 38.6 per cent of the annual budget estimate of Rs 11.5 trillion. This is in line with the trend of six-monthly collections in the last two years.

Among the constituents of direct taxes, collection of advance corporate income tax showed an impressive growth of 16.4 per cent this year, riding over an 8 per cent growth in the last two years. Experts have welcomed the data, pointing out that the worries to government finances are external.

Overall advance tax collection was Rs 2.1 trillion in the period, 18.7 per cent higher than the previous year.

“It is pertinent to mention that gross collections of the corresponding period of 2017-18 also included extraordinary collections under the Income Declaration Scheme (IDS), 2016 amounting to Rs 102.54 billion, which does not form part of the current year’s collection,” the Central Board of Direct Taxes said in a release.