76 per cent gap in recovery of advance tax

Mumbai, Ta. 17 June 2020, Wednesday

As a result of the economic crisis caused by the coronavirus, the country's advance tax collection has declined by 3% year-on-year in the first quarter of the current financial year. Advance tax figures that reflect corporate sector revenue for that year.

As on June 15, direct tax collection has been 6 per cent lower than last year. Advance tax collection stood at Rs 15,000 crore as on June 15, as against Rs 30,000 crore in the same period last year.

Corporate tax collection, which stood at Rs 208 crore in the same period last year, has declined by 3 per cent to Rs 5 crore this year. Net direct tax collection, which stood at Rs 1.5 trillion on June 16 last year, has come down to Rs 21 crore this year.

Refunds also fell by 9 per cent to Rs 512 crore from last year, according to data released by the Central Board of Direct Taxes.

In fact, the realization of tax collection is much lower than what the Finance Minister had projected when he presented the budget for the current financial year. "Advance tax figures give an estimate of how much corporate and personal income has fallen in the current financial year," said a tax expert.

Advance tax collection from Mumbai has declined by 9 per cent, while Delhi has declined by 4 per cent, Chennai by 21 per cent and Ahmedabad by 4 per cent. Advance tax is collected in four installments. The first installment has to be paid by June 15.

The Corona has had the most serious impact on sectors such as auto, real estate, tours and travel in the country and is also showing signs of longevity.