Defying Covid, Income tax mop up in Vidarbha grows 106%

NAGPUR: Income tax collections in Nagpur region have also grown in line with the national trend, defying calls by businessmen that the pandemic has taken a toll on the earnings. The tax mop up shows a different picture altogether.
The collections have gone up despite no actions like raids or surveys, which have been withheld by the department due to the Covid-19 situation.
The net income tax collection from Nagpur region, which covers entire Vidarbha, has grown by 106% at Rs1,543 crore as on June 17. As against this, the mop up stood at Rs748 crore during the same period last year. This includes tax paid for the earnings in financial year 2020-21 and also advance taxes which are paid on current year’s income.
The trend reflects that tax-payers earned well not only in the last financial year, but going has been good in the current fiscal too. This goes for both corporates and individual tax-payers.
The growth rate in net collections in Nagpur surpasses the national average by 21%. Nationally, net collections for the period had gone up by 85% at Rs2,35,229 crore.
Advance tax collection till June 17 has grown more than double at Rs332 crore in the region. Out of this, advance tax collections from corporates is up by 150% and that by individuals has grown by 96.19%, shows data maintained by income tax department. This is the first instalment of advance tax.
Collection through self-assessment in the region has grown by 1133%, which is the highest under all the heads. Not much in absolute terms, but self-assessment tax payment from corporates, which stood at mere Rs2.70 crore last year, has touched Rs33.30 crore this fiscal. Payment of self-assessed tax by individuals has grown by 49% at Rs60 crore as on June 17.
If there is any shortfall in payment of advance tax during a financial year, it is covered by self-assessment in the subsequent fiscal. The massive growth under this head is noteworthy, said sources.
Tax deducted at source (TDS) on sale of properties is another area of growth. Tax under this head has gone up by 353% at Rs12.70 crore till June 17.
The tax collections may have gone up, but refunds have come down. According to the data, refunds to both corporates and individuals clubbed together are down by 64% at Rs142.90 crore. Refunds to corporate tax-payers have gone down by 90% at Rs12 crore as against Rs135 crore as on June 17 last year.
Chartered accountant and income tax practitioner Kailash Jogani said this shows that there has been no change in overall income, except in the retail segment that was affected due to the lockdown. The corporates have also performed well and the collection has happened without any coercive action, he said.
IN A NUTSHELL
* Net collections in Vidarbha were at Rs748 crore as on June 17 last year
* It has touched Rs1,543 crore as on June 17, 2021
* Refunds are down by 64%
* Growth rate in net collections in Nagpur surpasses national average by 21%