Direct tax kitty swells by 24.8 per cent

India’s direct tax collection registered a growth of 24.8 per cent to Rs 1.24 lakh crore during April- June period, mainly on the account of early advance tax mop-up.

It means that 14.63 per cent of the annual budget target of direct taxes has been achieved in the first three months of the FY 2016-17.

Meanwhile, indirect tax collections rose by about 30.8 per cent during April-June period to Rs 1,99,790 crore compared to the same period last fiscal.

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 per cent, 30 per cent, 30 per cent and 25 per cent in the months of June, Septem-ber, December and March of every financial year.

The trend in gross revenue of corporation tax is indicating an increase of 13.5 per cent.