In the first four months of the current fiscal year compared to the same period of FY 2021–2022, the corporation tax collection increased quickly by 34%, according to the Income Tax Department.
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.”
Additionally, it stated that as compared to tax collection in FY 2020–21, corporate tax collections during FY 2021–22 showed a growth rate of 58%.
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. (1/4)@FinMinIndia
— Income Tax India (@IncomeTaxIndia) August 12, 2022
The corporate tax receipts for FY 2021–22 was Rs. 7.23 lakh crore, up more than 58% from the tax receipts for FY 2020–21. Even so, the collections in FY 2021–22 are nearly 9% higher than those of FY 2018–19 (the pre–COVID period).
Furthermore, it added that despite the overall effects of the Covid-19 epidemic during FY 2020–21, which temporarily reduced business tax collections, the positive trend of growth is still present.
“This indicates that the simplified tax regime with low rates and no exemptions has lived up to its promise,” the IT department added.
Focus on Capex in the budget for the current FY
The focus on capex in the Budget for the current fiscal year, according to the finance ministry, will increase manufacturing and tax revenue collections, putting India on pace to becoming a $5 trillion economy.
The finance ministry referred to the previous fiscal year’s tax receipts, which increased by 34% to 27.07 lakh crore, as “a remarkable evidence to the swift recovery” of the economy following multiple waves of the Covid-19 pandemic.
The central government, it said, has kept the nominal GDP growth rate above 10% in recent years, with the exception of a small setback caused by Covid-19-19. India’s GDP has been propelled by GST, a revolutionary step that simplifies the collection of indirect taxes.
