The increase in demand will result in a limited tax deficit

Mumbai, Ta. 12 December 2020, Saturday

The decline in the country's total tax revenue in the current financial year is likely to be the same as last year. The Corona disrupted the country's economy, which was expected to see a sharp drop in tax revenues, but the last six months of the current financial year have seen a sharp recovery in tax revenues, an analyst said.

In the current financial year, tax revenue is expected to fall by Rs 4.50 lakh to Rs 5 lakh crore, government sources said. In the first six months of the current financial year, the net income from taxes stood at Rs 2.31 lakh crore.

The revised tax collection for the full year has been revised to a total of Rs 21.5 lakh crore. In the last financial year, there was a deficit of Rs 1.5 lakh crore in net tax collection.

There were fears of a sharp drop in tax revenue due to the adverse impact of the corona on the country's economy, but tax collection has been strong in the last few months as demand has risen sharply, tax department sources said.

He also added that the current year's tax revenue will be estimated from how much advance tax is collected in the December quarter next week.

For the first time in the current financial year, in October, GST revenue was over Rs 1 lakh crore. Demand for vehicles and electronics items has risen sharply since the lockdown.