Third-quarter advance tax revenues of Rs.3.14 lakh crore represented a significant 16.8% year-over-year rise. This growth, according to economists, indicates that the economy is rebounding from the decline that occurred during the previous quarter, which was characterized by poor growth.
Advance tax receipts for the current fiscal year as of December 15 were Rs.7.5 lakh crore, a 20.19% increase over the same period the previous year. This sum comprises Rs.1.91 lakh crore from personal income taxes and ₹5.60 lakh crore from corporate advance taxes.
The third-quarter advance tax payment deadline of December 15 at 11:30 PM is reflected in the data. An official pointed out that once bank transfers are finished, the final number can vary a little.
Four installments of advance tax are due in June, September, December, and March. It is a measure of the success of the corporate sector in the months ahead and is based on the projected income of taxpayers for the year.
It is normal to pay 15% of the tax liability in June, 45% in September, 75% in December, and the remaining amount in March.
Economists suggested that the economy may have turned a corner after recording its slowest growth in seven quarters at 5.4% in the July-September period. This second-quarter performance raised concerns about a potential slowdown, prompting many private economists and multilateral organizations to revise their projections for fiscal 2025 downward.
ICRA's chief economist, Aditi Nayar, noted that high-frequency data indicates a potential turnaround in GDP growth for the ongoing quarter. She added, "We expect the 5.4% GDP growth in Q2 to mark the lowest point.":
As of December 15, direct tax collections, net of refunds, increased by 14% to ₹15.78 lakh crore. This amount includes ₹7.42 lakh crore from corporate tax, ₹7.93 lakh crore from personal income tax, and ₹40,113 crore from securities transaction tax.
Despite the issuance of ₹3.35 lakh crore in refunds, a 48.8% increase from the previous year, net collections grew at a strong pace. "While advance tax growth has been robust, refunds have somewhat offset the overall year-on-year increase in direct tax collections," Nayar stated. The Centre had set a target of ₹20.1 lakh crore for direct tax collections in the fiscal year, which includes ₹10.20 lakh crore from corporate tax and ₹11.87 lakh crore from personal income tax.
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