Advance Tax Collections For Corporate Tax, Income Tax Turn Positive

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The date of the fourth to-be-paid instalment for Advance Tax collection has ended on March 15. And, the collection for Corporate Tax and Income Tax has turned positive. Besides, a shortfall of 4% has been observed in the net direct collection against  9% as in January to 13% in the 3rd instalment to be paid on or before December 15. In this article, we will discuss Advance Tax Collections For Corporate Tax, Income Tax Turn Positive.

Advance Tax Collections For Corporate Tax

A senior Finance Ministry official said, every year advance tax collection has seen a growth of 8.5% for corporate tax. As per the updated figure, advance tax collection for income tax has registered an increase of 2.3% this year.

It implies that there has been a significant improvement in corporate earnings. It seems that advance tax collection for the direct tax to exceed the revised target for Financial Year 2021 (FY21).

Those who have a tax liability of INR 10000 or more in a financial year pay advance tax. Both salaried as well as relied on the business person to pay advance tax. The payment of instalments starts from the 15th of June with 15% of payable advance tax. Then, by the 15th of September, it covers 45% of the payment. After this, one needs to pay up to 75% of advance tax (which also adds paid taxes) on or before the 15th of December.

At last, the remaining 25% advance tax (paid taxed also included in it) should be paid before the 15th of March. In case one doesn’t pay the advance tax then, it adds the interest too

Tax Collection Revised Estimate

Earlier, the government had set the advance tax collection for Financial Year (FY) 2020-21 of INR 6.81 Lakh Crores for corporate tax. Moreover, the budget also estimated that the advance tax collection for the income tax will be INR 4.59 Lakh Crores. During this fiscal, the government is very hopeful and positive for exceeding the estimation.

However, the data has shown a 1% declination in the gross collection. Also, a 4% shortfall has been recorded after the adjustment of refunds.

Advance Tax Mirroring Resurgence

“Post March advance tax deadline, narrowing down the gap to 4% of the revised tax collection will definitely cheer the economy as well as mirror the advance GST collections resurgence from over the last quarter”, Aravind Srivatsan, Tax Leader & Partner with Nangia Andersen LLP said.

He also said that the taxes collection under the one-time “Vivid se Vishwas” Scheme has reached close to 100000 Crore with its growing trend in the tax collections factors.

Adding further, he said “the corporate tax rates were decreased for the FY 2019-20, which came into effect in FY 2020-21, everyone needs to understand it and to refund to many businesses and small taxpayers who needed to tide over pandemic losses, governments had followed many measures.

Rules That Are Changing From April 1, 2021: Income Tax

Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.

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