The government’s November decision to demonetize high-value currency notes of Rs 500 and Rs 1,000 has pushed the net direct tax collection by 14.8 per cent to Rs. 1.42 lakh crore at the end of first quarter on account of surge in advance tax payments.
During April—June, the revenue department also issued refunds to the tune of Rs. 55,520 crore. This was, however, 5.2 per cent lower than the refunds issued during the corresponding period last fiscal.
The net direct tax collection represents 14.5 per cent of the total Budget Estimates of direct taxes (Rs 9.8 lakh crore) for 2017—18, the finance ministry said in a statement.
While gross collections under Corporate Income Tax (CIT) grew at 4.8 per cent, that from Personal Income Tax (PIT), including Securities Transaction Tax (STT), rose by 12.9 per cent.
“However, after adjusting for refunds, the net growth in CIT collections is 22.4 per cent while that in PIT is 8.5 per cent,” it added.
Giving further details, the ministry said that an amount of Rs. 58,783 crore has been received as advance tax up to June 30, 2017, reflecting a growth of 11.9 per cent year—on—year.
The growth in corporate advance tax is at 8.1 per cent and that in personal advance tax is at 40.3 per cent.
(With PTI inputs)