Due to low base, a pick-up in exports, better compliance, and smaller refunds, the Centre's net direct tax collections as of June 15 this fiscal were Rs 1,85,871 crore, more than double what they were a year ago. As the June 15 deadline passed, advance tax receipts in the first quarter of FY21 were Rs 28,780 crore, rising 146 percent year on year.
The advance tax mop-up, a reflection of corporate profitability, is still way below the level FY20, the year before Covid ravaged the economy. Tax payers have to deposit 15 per cent of their estimated annual taxes as advance tax in the first quarter of a fiscal year.
“We are cautiously optimistic at this stage. Direct tax numbers not only speak of the strong and system bound foundations of the tax department but also resilience of many sectors of the economy which stood up to the current challenges,” Central Board of Direct Taxes (CBDT) chairman JB Mohapatra said.