Press Information Bureau

Government of India

Ministry of Finance

08-July-2016 18:46 IST

Direct Tax Collections upto June, 2016 indicate net revenue collections of ₹ 1.24 lakh crore; registering an increase of 24.79% over the corresponding period last year.

The direct tax collections upto June, 2016 indicate net revenue collection of ₹ 1.24 lakh crore which is a growth of 24.79% over the corresponding period last year. The main reason for this increase is the change in the requirements for advance tax payment even in respect of individuals which has been made in the last year’s Budget. Earlier there were only three instalments of advance tax to be paid by individuals in the months of September, December and March. From the current year, individuals are also supposed to pay four instalments of advance tax at the rate of 15%, 30%, 30% and 25% in the months of June, September, December and March of every Financial Year. The collection upto June, 2016 indicates that 14.63% of the annual budget target of direct taxes has been achieved in the first three months of the F.Y. 2016-17.

In terms of growth rate for corporation tax and personal income tax, the trend in gross revenue of corporation tax is indicating an increase of 13.5% while that of personal income tax (including STT etc.) a growth of 29.8%. However, after adjusting for refunds, the net growth in corporation tax is at 4.43% while that of personal income tax (including STT etc.) at 48.75% as compared to previous year .This increase is mainly due to large refunds made in the previous year as compared to the current year.

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DSM

Advance tax instalment change accelerated individual payments, boosting early direct tax collections this fiscal year. Direct tax receipts for the initial quarter increased notably due primarily to a change in individual advance tax instalment requirements introduced in the prior year's Budget, which moved an early instalment into June and accelerated collections; gross corporation tax rose modestly while gross personal income tax rose substantially, and after refund adjustments net corporation tax growth is lower whereas net personal income tax growth is significantly higher, with the revised advance tax schedule identified as the principal cause of the early attainment of a substantial portion of the annual direct tax target.