The country’s direct tax collections for the financial year 2020-21 were at Rs 9.45 lakh crore, according to data released by the Ministry of Finance on Friday, April 9. During the fiscal ended March 2021, the provisional direct tax collections registered a growth of almost five per cent. The net direct tax collections represent 104.46 per cent of the revised estimates of Rs 9.05 lakh crore of direct taxes for fiscal 2020-21, showed the government data. The income tax department exceeded the revised estimates despite issuing substantial refunds during 2020-21 fiscal, according to the Central Board of Direct Taxes (CBDT).
The net direct tax collections include the corporation tax or CIT, which was at Rs 4.57 lakh crore, and the personal income tax or PIT, involving the security transaction tax or STT, which was at Rs 4.88 lakh crore.
According to the Finance Ministry, the advance tax collections for the financial year 2020-21 stood at Rs. 4.95 lakh crore, which registered a growth of almost 6.7 per cent, compared to the previous fiscal (2019-20). The advance tax collections in the preceding fiscal year stood at Rs 4.64 lakh crore.
The refund amounting to a total sum of Rs 2.61 lakh crore were issued in fiscal year 2020-21, registering a growth of almost 42.1 per cent, compared to refunds amounting to Rs 1.83 lakh crore in the previous fiscal (2019-20)
During the financial year 2020-21, the gross direct tax collection stood at Rs 12.06 lakh crore. After taking out the refunds of Rs 2.61 lakh crore, the net mop up stood at Rs 9.45 lakh crore. There was a 42 per cent growth in the issuance of refunds.
The Finance Ministry noted that the net direct tax collections for fiscal 2020-21 have registered an upswing, despite the challenges faced by the economy due to the COVID-19 crisis.