India’s direct tax collection in FY 2020-21 exceeds revised estimate by 5%

The net direct tax collection for the previous fiscal year (FY 2020-21), which ended in March, stood at Rs 9.45 lakh crore, reported PTI. This was 5% more than the revised estimates in the Union Budget that was Rs 9.05 lakh crore.

Also read: India’s debt to GDP ratio is 90%, may drop if COVID-hit economy recovers: IMF

Central Board of Direct Taxes (CBDT) Chairman P C Mody on Friday said the income tax department has exceeded the revised estimates despite issuing substantial refunds in 2020-21 fiscal. The net personal income tax collected in the previous fiscal was Rs 4.71 lakh crore. 

The net corporate tax collection stood at Rs 4.57 lakh crore and securities transaction tax (STT) at Rs 16,927 crore.

Although the net collection in FY 2020-21 was more than the revised estimate, it was 10% lower than the mop up in 2019-20.

A lot of measures have been taken to ease compliance burden and provide better taxpayer services, Mody said, adding that this got reflected in the tax collection for last fiscal.

Also read: India’s debt to GDP ratio is 90%, may drop if COVID-hit economy recovers: IMF

He hoped that same spirit in tax collection would continue in the current financial year.