Economy

Government Collects Rs.2.41 Lakh Crore From Income Tax in Q1

The Finance Ministry stated that the government collected over Rs.1.01 lakh crore in excise duty, and the direct tax collection stood at over Rs.2.41 lakh crore for April to June on Monday. In Lok Sabha, the Minister of State for Finance, Pankaj Chaudhary, gave details of the tax collected and stated that the government collected Rs.41,831 crore from customs duty and Rs.1,01,564 crore from excise duty.

In 2020-21, the total collection from customs duty was Rs.1.34 lakh crore, and excise duty was over Rs.3.89 lakh crore. Last year, the government had hiked the excise duty on diesel and petrol, leading to increased excise duty collections. 

The direct tax collection for Q1, i.e. the first three months of the current financial year (April to June), stood at around Rs.2.41 lakh crore. Out of the total direct tax collection of Rs.2.41 lakh crore, the corporate tax collection is about Rs.1.21 lakh crore, and the personal income tax is over Rs.1.20 lakh crore.

The Securities Transaction Tax (STT) collection is about Rs.5,373 crore, and the equalisation levy is about 631 crore for this fiscal year. In the last financial year, the total collection from corporate tax was over Rs.4.57 lakh crore, personal income tax was over Rs.4.71 lakh crore, and STT was about Rs.16,927 crore.

The direct tax collection in Q1 for the current financial year is double compared to the same period last year. Last year, the country was affected by the national lockdown from April to June. The jump in the direct tax collections in Q1 FY2022 compared to Q1 FY2021 reflects the resumption of various construction and industrial activities and healthy exports.

The net Central GST collection also stood at over Rs.1.17 lakh crore till June, and the compensation cess collection is Rs.24,636 crore. Last financial year, the direct tax collections were low in Q1 compared to the Q1 collections of this financial year. 

Though there was economic difficulty at the start of this year, the regional lockdowns of this year did not affect collections compared to the nationwide lockdown in 2020. There is an expectation that GDP will record a double-digit expansion in Q1. A double-digit GDP indicates a healthy economic revival and growth in India post-pandemic.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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