Tax collections for FY 21

The Ministry of Finance recently released the tax collection figures for the financial year 2020-21. According to the ministry, the direct tax collections for the financial year 2020-21 are Rs 9.45 lakh crores.

Tax collections for the fiscal year 2020-21

• The Direct Tax Collections include Personal Income Tax collections and Corporation Tax collections.
• The Personal Income Tax collected for the year 2020-21 was Rs 4.88 lakh crores.
• The Corporation Tax (or Corporate Tax) collected for the year 2020-21 was Rs 4.57 lakh crores.

Dross Collection of Direct Tax

The Gross Collection of Direct Tax for the year 2020-21 was Rs 12.06 crores. The gross collection of direct tax is the net amount before adjusting refunds. The other components of Gross Collection of Direct Tax are as follows:

• Corporation Tax: Rs 6.31 lakh crores
• Personal Income Tax: Rs 5.75 lakh crores
• Advance Tax: Rs 4.95 lakh crores
• Tax deducted at Source: Rs 5.45 lakh crores
• Self-Assessment Tax: Rs 1.07 lakh crores
• Regulator Assessment Tax: Rs 42,372 crores
• Dividend Distribution Tax: Rs 13,237 crores

Refunds Issued

In 2020-21, the GoI refunded Rs 2.61 lakh crores. This is 42.1% higher than that of 2019-20. In 2019-20, the GoI refunded Rs 1.83 lakh crores.

Definitions of Taxes

• Corporate Tax: It is the tax levied on profits of the companies.
• Personal Income Tax: It is the tax levied on salaries, wages, and other types of income of a person.
• Advance Tax: It is the income tax that should be paid in advance instead of lump sum payment at year end. The Advance Tax is also called earn Tax. It is the income tax a person must pay if his payable tax exceeds Rs 10,000. In such cases, the taxpayer pays in instalments.
• Tax Deducted at Source (TDS): It is the tax deducted from the money paid at the time of making specified payments such as commission, rent, salary, professional fees, etc.

Month: Current Affairs - April, 2021