Net Tax Collection exceeds revised estimates in FY21

In the fiscal year (2020-21) that ended on March 31, 2021, the corporate tax and income tax collected were Rs 9.45 lakh crores.

About the Tax Collections

• The tax collections in the fiscal year 2021 exceeded the revised target by 5%.
• The tax collected in 2021 was 10% lower than the direct tax collected in the previous year.
• In the Union Budget 2020-21, the Government of India predicted that Rs 13.19 lakh crores will be collected from direct taxes. However, this was before the inception of COVID-19 pandemic. After the pandemic, the estimate was reduced to Rs 9.05 lakh crores.
• The Net Corporate tax collection for the year 2020-21 was RS 4.57 lakh crores.
• The net personal income tax collected was Rs 4.71 lakh crores.
• In 2020-21, the issuance of refund has grown by 42%.

Direct Tax Collection: Comparative Analysis

• In the financial year 2019-20, the direct tax collected was Rs 10.49 lakh crores.
• In the year 2020-21, the direct tax was Rs 9.45 lakh crores.
• The target of direct taxes for the fiscal year 2021-22 has been set at Rs 11.08 lakh crores.

Vivad Se Vishwas Scheme

The scheme was launched to settle cases of disputed tax, penalty, interest. It will benefit the taxpayers whose tax demands are locked in multiple disputes solving forums. The scheme aims to settle 483,000 direct tax related disputes that are pending in appellate forums. It provided complete waiver on interest to the taxpayers who paid their taxes by March 31.

So far, the scheme has collected Rs 54,000 crores of tax. The last date for payment under the scheme has been extended to April 30, 2021.

Month: Current Affairs - April, 2021