The annual target may be surpassed as 90% in Q1 receipts
The stock market rally has more than doubled the STT collections in this quarter compared with Rs 2,568 crore collected in the last quarter.
The Union government’s net direct tax collections rose on-year to Rs 2,43,408 crore in the first three months of the current fiscal, and a pick-up in economic activities and lower refunds. The 1st quarter receipts are 22% of the target of Rs 11.08 lakh crore. The June quarter tax collections are 43% more than in Q1FY20, indicating that the receipts could exceed the annual target. It requires a 17% growth on-year to achieve the net tax revenue target for FY22. “We are positive about taller collections,” a senior official said.
Equalisation levy (better known as Google tax) rose almost 4 times on-year to Rs 631 crore in Q1FY22 as against Rs 158 crore collected in the last quarter.
The tax at 2% is levied on considerations received by non-resident operators(e-commerce) such as Google and Amazon from such supply or services and is being used as a primary measure to tax transactions from a digital economy, even as global moves on taxation of digital services is fast emerging.
The stock market rally doubled the securities transaction tax collections to Rs 5,373 crore this quarter, compared with Rs 2,568 crore collected in the previous quarter. The BSE Sensex has risen 6% between early April and late June. In April-June of the current fiscal, the gross direct tax collections stood at Rs 2,79,181 crore, up by 49%.
The total direct tax collections include corporation tax at Rs 1,47,486 crore in Q1FY22, an increase of 48% in the year-ago period. The gross personal income tax at Rs 1,25,682 crore as of June 30 of FY22 was 49% higher than in the year-ago period. Refunds up to about Rs 36,000 crore were issued in Q1FY22. It was much lower than the refunds issued in the period of FY21.