Direct Tax Collection Doubled For The First Quarter Of Current Fiscal

Direct Tax Collection Doubled For The First Quarter Of Current Fiscal

New Delhi, July 28 (TNA) Direct tax collection for the first quarter of the current fiscal has doubled, union Minister of State for Finance Pankaj Chaudhary told the Rajya Sabha in a written reply on Tuesday.

The Minister stated that the net direct tax collection in the 1st quarter of FY 2021-2022 is Rs. 2,46,519.82 crore as against Rs. 1,17,783.87 crore during the same period of previous FY 2020-21.

Giving reasons for increase in the tax collections, the Minister stated that it includes revival of economic activities and positive sentiments among taxpayers during this current financial year leading to increased income estimates and higher advance tax payments in the first quarter of the FY 2021-22 as compared to the corresponding period of FY 2020-21.

To the question of direct tax collections in the second quarter of the current fiscal, the Minister stated that the collection of taxes during second quarter cannot be ascertained for the present as the second quarter has just started

On details of indirect tax collections of the first two quarters of the current fiscal, the Minister stated that the second quarter of the current fiscal has just started, however the details of Net Indirect Tax (GST and Non-GST) revenue collection in the 1st quarter of FY 2021- 2022 is Rs. 3,11,398 crore.

What Is Direct Tax?
A direct tax is a tax that a person or organization pays directly to the entity that imposed it. An individual taxpayer, for example, pays direct taxes to the government for various purposes, including income tax, real property tax, personal property tax, or taxes on assets.

Stating about Vivad-se-Vishwas Scheme, the Minister said the Government has resolved significant number of pending direct tax disputes amicably with the taxpayers under Vivad-se-Vishwas Scheme, 2020.

This was the primary objective of the Scheme as provided in the short title therein ‘An Act to provide for resolution of tax and for matters connected therewith or incidental thereto’. The declarations received under the Scheme cover around 28.73% of pending tax disputes. Additional tax revenue received is an additional positive outcome.

On the recovery of economy, the Minister stated that the increased tax collection (Direct & Indirect) as reported in the first quarter of the current financial year as compared to the same period previous financial year shows that the economy is on the recovery path.

Higher tax collection would enable Government in increasing public expenditure which would have a positive impact on GDP, the Minister stated.

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