New Delhi : Direct tax collection registered a growth of 24.79 per cent to Rs 1.24 lakh crore during April- June period, mainly on account of early advance tax mop-up. The collection up to June indicates that 14.63 per cent of the annual budget target of direct taxes has been achieved in the first three months of the fiscal. Personal income tax collection grew 29.8 per cent while corporate taxes registered an increase of 13.5 per cent, an official statement said, reports PTI.
The main reason for the increase is change in requirements for advance tax payment even in respect of individuals made in last year’s Budget. From current year, individuals are also supposed to pay four installments of advance tax at the rate of 15 per cent, 30 per cent, 30 per cent and 25 per cent in the months of June, September, December and March. Earlier there were only three installments of advance tax to be paid by individuals in the months of September, December and March. After accounting for refunds, the net growth in personal income tax is 48.75 per cent and corporate tax is 4.43 per cent. In personal income tax, refund during April-June 2015-16 was much higher than in the corresponding period of the current fiscal.