According to official data released, Government’s net direct tax collections during April-December rose 18.2 per cent to Rs 6.56 lakh crore.
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The direct tax collections during the first nine months of this financial year accounted for 67 per cent of the total Budget Estimate of Rs 9.8 lakh crore, the Central Board of Direct Taxes (CBDT) said in a statement.
The increase in direct tax collections is primarily due to a 12.7 per cent growth in advance tax collections that were recorded at Rs 3.18 lakh crore up to December 2017, compared to Rs 2.82 lakh crore last year, during the same period.
Advance tax collections on account of corporate income tax grew 10.9 per cent, while those for personal income tax rose 21.6 per cent, whereas advance tax collections on account of corporate income tax had grown 10.6 per cent, while personal advance tax had registered a growth of 38.2 per cent during the same period last year.
Some Tax experts attributed the increase in direct tax collections to government’s measures to increase tax base after demonetisation, GST and governments emphasize on digital transaction.
The increase in advance tax receipts could also be the result of a simplification in the compliance processes for small business entities and increasing the threshold limit for opting for the Presumptive Taxation Scheme under income tax.