The rate of contraction in direct tax collection has reduced thanks to the pay
The rate of contraction in direct tax collection has reduced thanks to the payment of the second installment of advance tax, indicating a gradual revival of economic activity in some sectors in the current quarter.
Direct tax collections, net of refunds, declined by 22.6 per cent year-on-year (YoY) as of September 15, compared to a 30 per cent contraction till September 2. The decline in gross direct tax collections slowed to 16 per cent from the 21 per cent reported about a fortnight ago.
Although the deadline for paying the second installment of advance tax ended on Tuesday, the final numbers are yet to be collated and updated by banks. The final figures might show further easing in contraction.
Net direct tax collection stood at Rs 2.53 trillion as of September 15, down from Rs 3.27 trillion a year ago, according to provisional numbers shared by a government official. Refunds are marginally higher at Rs 1.04 trillion, as against Rs 1.01 trillion the previous year.
Advance tax is tax paid as and…