Direct Tax Collections Reach 7% of Whole Year Total Target as of 15 June 2020

As per the information gathered from various sources, The Government collected INR 92,681 crore through the net direct tax collections as of June 15. The said amount is 7.03% of the full-year target which is INR 13.19 lakh crore.

The data represents a 32.3% fall in the year to year collection because in the last financial year government had collected around 11.7% or  INR 1,36,941 crore of the then budget target till the same period.

Reports also stated that the received Gross direct tax collections As per the recently released Government reports and statements a 13% drop has been reported in Gross Direct Tax These types of taxes are directly imposed. Read more till 15 June was INR 1,37,825 crore, which is 31 percent less as compared to the collection of INR 1,99,755 crore during the same period in the previous financial year.

One of the Government officials also stated that “the revenue department is closely monitoring tax collections but will take a “cautious approach” before resetting the budgeted tax collection targets”.

The reported fall in the collection is the result of the pandemic and lockdown, and the same also affected the economic activity in this country during the current quarter.

The corporate advance tax collections The collection of advance tax has seen a massive decline resulting in more than 30% reduction in the Gross Tax Collections. The dip shows that the businesses. Read more reported 79% fall, personal income tax advance tax collection reported a fall of 64% and dividend distribution tax reported 75 percent fall and these are the major fall percentage.  However, there is a spike reported in the collections from the securities transaction tax of around 13.6%.

The fall of collection amount is caused by the poor performance of large and small taxpayers but it is expected that the collections will improve in the recent future because the banks are still in the way of providing updated reports of tax collections to the Finance Ministry. Meanwhile, June 15.was the last date to file the Q1 advance tax. Mumbai is the city worst-hit from the Corona reported a fall of 35% YoY (INR 39,079 crore) in the gross direct tax collections.