New Delhi, Dec 17 (Agency) The government’s tax kitty is set to surpass the Budget estimate, as the Advance tax collections for the FY22 (till third installment) grew 53.5 per cent to Rs 4.59 lakh crore as against Rs 2.99 lakh crore in the corresponding period of previous financial year. The higher tax collection is attributable to lower base last year and pick-up in economic activities. The Advance tax figure as on December 16, 2021 comprises Corporation Tax (CIT) at Rs 3.49 lakh crore and Personal Income Tax (PIT) at Rs 1.10 lakh crore. This amount is expected to increase as further information is awaited from banks, said the Income Tax department. The figures of Direct Tax collections for the Financial Year 2021-22 as on December 16 show that net collections are at Rs 9.45 lakh crore, compared to Rs 5.87 lakh crore in the corresponding period of the preceding financial year, representing an increase of 60.8 per cent.
“The Net Direct Tax collection of Rs 9,45,276.6 crore (as on December 16, 2021) include Corporation Tax (CIT) at Rs 5,15,870.5 crore (net of refund) and Personal Income Tax (PIT), including Security Transaction Tax (STT) at Rs 4,29,406.1 crore (net of refund),” the Income Tax department said. With tax collection being a function of economic growth, revenue buoyancy is expected to continue. The Indirect tax collections, which include Goods and Services Tax (GST), customs and a host of other levies have also been on upward trajectory. The uptrend in revenue collection is set to give comfort to the government in dealing with fiscal deficit and providing higher allocation for capital expenditure.