Home Latest News Q1 Advance Tax Mop-up is down 76% as the Covid-19 Pandemic Bits Economy

Q1 Advance Tax Mop-up is down 76% as the Covid-19 Pandemic Bits Economy

by Admin

The economic slowdown caused by the pandemic led to a 76% reduction in tax prepayments in the first quarter, reflecting the poor outlook for corporate earnings this year.

Until the 15th. At 30 June, the collection of direct taxes, after deduction of reimbursements, had fallen by 32% compared with the same period in the previous year. The 15th. In June, date of first payment, recovery of advances amounted to approximately Rs. 12,000, compared to Rs. 50 000 for the same period of the previous month.

Prepayment of corporation tax fell by 79% last year to Rs 8,572 from Rs 40,488. Net direct tax collection amounted to Rs 92,681 compared to Rs 1,3700 billion for the same period last year.

During this period, the Central Authority for Direct Taxes issued Rs. 45,143, which is 28% less than the previous year.

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The collection was disappointing and almost destroyed the budget revenue forecast for February. The Ministry of Finance must quickly review these objectives to make them achievable. Preliminary tax data show that companies and individual valuers have negative profit prospects for the fiscal year, according to a senior government official.

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, Mumbai, a major jurisdiction, reported a 78 percent reduction in prepaid taxes, while New Delhi, Chennai, Calcutta and Ahmedabad reported reductions of 76 percent, 81 percent and 84 percent respectively. Paying tax in advance means paying tax when the money arrives instead of waiting until the end of a tax year.

The first payment must be made before 15 June (15 %), the second before 15 September (45 %), the third before 15 December (75 %) and the last payment before 15 December. Mars. The blockade affected all sectors, with tourism, hotels and restaurants being hardest hit.

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GDP growth fell to a low of 4.2% in the year 20 and a recession is expected for the year 21. The Reserve Bank of India said Friday that Indian GDP growth in 2020-21 will be in the negative zone as the pandemic has disrupted economic activity.

Figures on the lines provided. In view of the recession forecast for the financial year, tax collection will be negative for the second consecutive year. It’s just a matter of reviewing the collection targets at a realistic level in favor of the tax inspectors, another tax inspector said.

Achieving the target of 13.19 trillion rupees requires an estimated growth rate of 33% compared to the estimated 12%.

The tax authorities missed the downward revision of the direct tax collection target for 2019-20 by Rs 1.17 trillion, down 7.8% on the previous year.

The direct tax-to-GDP ratio fell to a 14-year low of 5.1%, while the indirect tax-to-GDP ratio reached its lowest level in five years in fiscal year 20. Even though we’ve only been locked up for a week because of this year’s pandemic.

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