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economy | IST

Govt collects 7% of full-year direct tax target as of mid-June

Mini

The government has collected Rs 92,681 crore through net direct tax collections as of June 15, 7.03 percent of its full-year target of Rs 13.19 lakh crore

The government has collected Rs 92,681 crore through net direct tax collections as of June 15, 7.03 percent of its full-year target of Rs 13.19 lakh crore, sources said.
This represents a 32.3 percent fall in collections year-on-year: last fiscal, the government had mopped up Rs 1,36,941 crore in net direct taxes till around the same time, or about 11.7 percent of the then budgeted target.
Gross direct tax collections received as on 15 June stood at Rs1,37,825 crore, down by 31 percent compared to Rs 1,99,755 crore during the same period last year.
Government sources said the revenue department is closely monitoring tax collections but will take a “cautious approach” before resetting the budgeted tax collection targets.
The fall in tax collections is on account of the pandemic lockdown, which stalled economic activity for the most part of the current quarter.
The weakness was most fell in corporate advance tax collections (79 percent), personal income tax advance tax collection (64 percent) and dividend distribution tax, or DDT (75 percent). However, collections from securities transaction tax rose 13.6 percent.
The decline in collections due to poor business performance of both large and small taxpayers and collections are likely to improve as banks are still providing updated tax collections figures to the Finance Ministry. The last date to file Q1 advance tax was on June 15.
The gross direct collections from the Mumbai region – the city has been the worst-hit from the pandemic – fell 35 percent YoY to Rs 39,079 crore.