At ₹9.45 lakh crore, direct tax collections for FY21 exceed revised estimates
The provisional figures mark a departure from a gloomy scenario late last year. In the April-September 2020 period, gross tax collection had fallen by 27.5 per cent to ₹7.2 lakh crore compared to ₹9.2 lakh crore a year ago. The budget target for direct tax collection in the 2020 financial year was ₹13.2 lakh crore, and till September, barely 24 per cent of that target was achieved. These tax collection targets were fixed in January without factoring in the COVID-19 impact on the economy
India’s direct tax collections for the financial year 2020-21 (FY21) stood at ₹9.45 lakh crore, the finance ministry said on Friday (April 9). The net direct tax collections represent 104.46 per cent of the revised estimates of ₹9.05 lakh crore of direct taxes for FY21, the statement said. The provisional figures show that net collections grew by 5 per cent.
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The net direct tax collections include corporation tax (CIT) at ₹4.57 lakh crore and personal income tax (PIT), including security transaction tax (STT), at ₹4.88 lakh crore.
“The net direct tax collections for the FY 2020-21 have shown an upswing, despite the inherent challenges brought on by COVID-19 on the economy,” the ministry said.
The gross collection of direct taxes (before adjusting for refunds) for FY21 stands at ₹12.06 lakh crore. This includes CIT at ₹6.31 lakh crore and PIT, including STT, at ₹5.75 lakh crore; advance tax of ₹4.95 lakh crore; tax deducted at source (including central TDS) of ₹5.45 lakh crore; self-assessment tax of ₹1.07 lakh crore; regular assessment tax of ₹42,372 crore; dividend distribution tax of ₹13,237 crore and tax under other minor heads of ₹2,612 crore, the statement said.
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The provisional figures mark a departure from a gloomy scenario late last year. In the April-September 2020 period, gross tax collection had fallen by 27.5 per cent to ₹7.2 lakh crore compared to ₹9.2 lakh crore a year ago. The budget target for direct tax collection in the 2020 financial year was ₹13.2 lakh crore, and till September, barely 24 per cent of that target was achieved. These tax collection targets were fixed in January without factoring in the COVID-19 impact on the economy.
The ministry said on April 9 that refunds amounting to ₹2.61 lakh crore have been issued in FY21 as against refunds of ₹1.83 lakh crore in the FY20, marking a rise of nearly 42.1 per cent on-year.