India Inc’s advance tax figures grew exponentially by 171 per cent during the first quarter of 2019-20, prompting the tax authorities to say that the economy may be back on track after witnessing lacklustre growth in earlier quarters.
In overall direct tax collection, Mumbai has registered 133 per cent growth, collecting Rs 17,174 crore of advance taxes against Rs 7,356 crore in the same period last year, according to the data compiled by the tax department.
Corporate tax collections stood at Rs 14,873 crore, against Rs 5,477 crore a year ago. Individuals paid Rs 2,301 crore, up 22.4 per cent over Rs 1,879 crore in Q1 of 2018-19 (FY19).
The first instalment of advance tax for the current fiscal year ended on June 15. Assessees falling under the ambit of advance tax payment are required to pay 15 per cent of the evaluated tax liability.
The tax authorities believe that such a staggering growth rate is a positive sign for the economy. “These are stupendous figures, which are unusual but encouraging at this point in time,” said an income-tax official.
Source: Business Standard
