PremiumThe Income Tax Department has informed that the corporate tax collection has seen a rapid growth of 34% in the first four months of the current fiscal year as compared to the corresponding period of FY 2021-22.
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The Income Tax Department has informed that the corporate tax collection has seen a rapid growth of 34% in the first four months of the current fiscal year as compared to the corresponding period of FY 2021-22.
In a series of tweets, the IT department said, "The corporate tax collections during FY 2022-23 (till 31st July, 2022) register a robust growth of 34% over the corporate tax collections in the corresponding period of FY 2021-22."
It also said that the corporate tax collections during FY 2021-22 registered a growth rate of 58% as compared to tax collection during FY 2020-21.
"The corporate tax collections during FY 2021-22 at Rs. 7.23 lakh crore registered a growth of over 58% as compared to the tax collection of FY 2020-21. Even when compared to collections of FY 2018-19 (pre-COVID period), the collections of FY 2021-22 are higher by over 9%.
Further, it stated that the positive trend of growth continues, but for the overall impact of the Covid-19 pandemic during FY 2020-21, when the corporate tax collections took a temporary hit.
"This indicates that the simplified tax regime with low rates and no exemptions has lived up to its promise," the IT department added.
Earlier in April this year, the finance ministry stated that the focus on capex in the Budget for the current fiscal year will boost manufacturing and tax revenue collections, thereby keeping India on track to becoming a $5 trillion economy.
In the last fiscal year, tax revenues grew by 34% to ₹27.07 lakh crore, which the finance ministry called it a "a remarkable testimony to the rapid recovery" of the economy following successive waves of Covid-19 pandemic.
It added that apart from a brief setback owing to Covid-19-19, the central government has maintained the nominal GDP growth rate above 10% in recent years. GST, a simplified way of collecting indirect taxes, has been a revolutionary step propelling India's GDP.
(With inputs from agencies)