Direct tax collection soars 48 per cent in FY22

India's collection from tax on personal and corporate income jumped over 48 per cent in the current fiscal after a 41 per cent surge in advance tax payments showing sustained economic recovery in a year that witnessed two waves of coronavirus infections. Almost 53 per cent of all direct tax collection was from corporate tax, while 47 per cent came from personal income tax, including securities transaction tax (STT) on shares. The rapid containment of Omicron, vaccination and declines in new infections helped the recovery.

The net collections in direct taxes, which is made up of income tax on individual income, corporation tax on profits of companies, property tax, inheritance tax and gift tax, in the current fiscal is 35 per cent higher than the collection of Rs 9.56 trillion in the pre-pandemic year of 2019-20 (April 2019 to March 2020). Net direct tax collections for the financial year 2021-22 so far are at over 13 lakh 63 thousand crore rupees compared to over 9 lakh 18 thousand crores over the corresponding period of the preceding financial year. This is a growth of 48.41 percent. Advance tax collections for 2021-22 stand at over 6 lakh 62 thousand crore rupees which has shown a growth of approximately 40.75 percent. Refunds amounting to 1 lakh 87 thousand 325 crore rupees have also been issued in the financial year 2021-22 so far.