Corporate adv tax collection up 51%

AS per Income Tax department's officials, the 1st-quarter (April-June'21) numbers in terms of advance tax collections from corporates went up by 51 per cent during the period on YoY basis. Advance taxes are known to be the barometer of a country's economic growth.

"Not to mention that the last fiscal year's first quarter had been hit by the beginning of the pandemic. So, automatically the figures showed a sharp jump. The 2nd instalment will have a clearer picture," said a senior official of the I-T department requesting anonymity.

Earlier, the preliminary data showed a growth rate of 146 per cent, which has now been revised downwards. Direct tax collection (net) during the period under review stood at Rs 2.33 lakh crore.

Companies and individuals are required to pay 15 per cent of their tax liability as the 1st instalment-in the 1st qtr of every financial-year.

Talking to Bizz Buzz, Kishore Ostwal, CMD, CNI Research said, "Irrespective of the pandemic, we were expecting 18 per cent growth in the net profit (earning) of the India Inc for FY2020-21. In realoity, it rose by 24 per cent. Now, we are expecting a growth of 36 per cent growth in earnings for the current fiscal and I'm cock sure that we will be able to beat the margins in the current fiscal."

Since our earning expectations have doubled for the current fiscal, from the last fiscal, the massive growth in advance collections in the first quarter of the current fiscal are on the expected lines, he added.