Corporate Tax

Enter tax assortment for company tax, revenue tax constructive

Input tax collections for both corporation tax and personal income tax performed well at the end of the fourth installment, which was due on March 15, and around 13 percent after the third installment of input tax was paid on December 15.

Mop-up for direct taxes is set to exceed the revised fiscal year 21 target

A senior Treasury official said input tax collection for corporate taxes increased 8.5 percent on an annualized basis. Similarly, the input tax collection for income tax now shows an increase of 2.3 percent. “The overall outlook is positive. An increase in input tax for collecting input tax means corporate profits have improved significantly, ”the official said.

Input tax is paid by individuals who have a tax liability of £ 10,000 or more in a fiscal year. It is paid by both the employees and the companies. The input tax can be paid in four installments by June 15, September, December and March. On or before June 15, 15 percent of input 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 input tax minus amounts already paid and the remaining amount by March 15th. If input tax is not paid, interest will be charged.

Time to put income tax on hold

Revised estimate

The government had previously set a corporate tax target of £ 6.81 billion for FY2020-21, which has been revised to £ 4.46 billion. For income tax, the budget estimate was 6.38 lakh crore, but now, in the revised estimate, that amount has dropped to 4.59 lakh crore. The government hopes to exceed the revised estimate in the current fiscal year.

Recent data shows a gross collection shortfall of just over one percent, while the net collection after reimbursement adjustment is 4 percent.

Direct tax

(Amount in £ crore / data year to date)

Entire tax collection

Tax collection in segments

2019-20

2020-21

% Change

2019-20

2020-21

% Change

Gross

11,34,707

11,20,638

(-) 1.2

Corporate Income Tax Advance

3,31,562

3,59,753

8.5

refund

1,78,156

2.02.208

13.5

Corporation tax

1,83,063

1,87,047

2.2

network

9,56,550

9,18,430

(-) 4

Income tax – advance

1,08,712

1,11,224

2.3

Income Tax – TDS

3,00,566

3,06,321

1.9

Source: Government Official

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