The Finance Ministry announced on Wednesday that India’s direct tax revenues in the first two and a half months of 2021-22 have reached about 1.8 lakh crore, more than double the collections in the same period last year, which were hampered by the nationwide lockdown.
“Given the decreased stringency of the staggered regional lockdowns in 2021 vs. the nationwide lockout in 2020, the increase in direct tax receipts in Q1 FY2022 reflects healthy exports and the continuing of diverse industrial and construction operations.
This backs up our prediction that GDP will grow by double digits in the first quarter “ICRA’s top economist, Aditi Nayar, confirmed as much.
According to economists, tax revenues indicate that the first quarter of this year could see double-digit growth.
From April 1 to June 15, direct revenues included Corporation Tax receipts of 74,356 crore and Personal Income Tax inflows of 1.11 lakh crore, which included the Security Transaction Tax. Last year, over the same time, collections totaled 92,762 crores.
Corporation tax accounts for 18,358 crores, whereas personal income tax accounts for 10,422 crores. “As more information from banks becomes available, this amount is projected to rise,” the ministry warned.
This fiscal year, tax refunds totaling roughly Rs. 30,731 crore have been issued.
“Despite extremely difficult early months of the new fiscal, Advance Tax collections for the first quarter of 2021-22 stand at 28,780 crores, compared to Advance Tax collections of 11,714 crores in the immediately preceding Financial Year, showing a growth of approximately 146 percent,” the Finance Ministry said.
