Advance tax collection for Q3 down 22%

Advance tax collections declined by over 22 per cent to Rs 42,600 crore in the third quarter of the current fiscal as compared to Rs 54,900 crore in the same period last fiscal, mainly on account of expected subdued performance by India Inc.

Advance tax is paid by companies, firms and individuals based on their income projections for the financial year. Companies and firms pay advance tax in four installments – June 15, September 15, December 15 and March 15.

Individuals pay in three installments – September 15, December 15 and March 15.

Overall advance tax collections were down by 2.6 per cent at Rs 1,13,000 crore till December in the current financial year as compared to Rs 1,16,000 crore in the corresponding period last fiscal.

Total direct tax collections were up 11.5 per cent at Rs 2,32,000 crore till December 24 of this fiscal from Rs 2,08,000 crore in the earlier year.

The direct tax collection was up by over 40 per cent in the corresponding period last year, indicating pressure on the tdirect ax collections due to the impact of the economic slowdown.

Corporate tax collections rose 15.3 per cent to Rs 1,50,000 crore from 1,30,000 crore.

Source : Business Standard.