Input tax collection on income tax almost doubled after the third installment was completed. December 15th was the due date for the third installment of advance tax. The improvement in input tax shows that the economy is recovering.
According to government sources, total pre-tax collection after the third installment was more than 3.45 lakh crore compared to ₹ 2.09 lakh crore of the previous tax. with a growth of 65 percent. Total pre-tax in connection with income tax rose to around 95,000 billion, compared to around 48,000 billion, which corresponds to a growth of around 98 percent.
For corporation tax, three advance tax rates were over 2.50 lakh crore versus over ₹ 1.61 lakh crore, an increase of around 56 percent.
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The advance collection improvement increased the total as the gross collection from April to date reached over 9.64 million yen crore compared to 6.42 billion yen for the corresponding period in FY2020-21, an increase of 50.3 percent is equivalent to. After the deduction of the refund, net recoveries reached over 8.29 lakh crore versus ₹ 4.96 lakh crore, representing a growth of over 67 percent.
Input tax is the income tax paid in advance on income generated in a given fiscal year. The tax is usually payable when the income is earned. Nevertheless, according to the tax regulations of advance tax, the payer must estimate the income for the whole year. And based on this estimate, the tax will be paid periodically. Here it is important that the taxpayer estimates the income and then calculates the estimated tax on it in order to check whether and in what amount he has to pay the input tax.
According to Section 208 of the Income Tax Act 1961, every person whose estimated tax liability for the year is 10,000 or more is subject to input tax. Seniors who have reached the age of 60 and have no income from commercial or freelance work are excluded from the input tax payment.
The input tax can be paid in four installments by June 15, September, December and March. On or before June 15, 15 percent of the advance tax must be paid. By September 15, it should be 45 percent of the payment minus the amount already paid. Up to December 15th it is 75 percent of the advance tax minus the amount already paid and the remaining amount by March 15th. If the advance tax is not paid, interest will be charged.