SBI advance tax payment marginally up by 2.5%

Banks have paid higher advance tax in Q1; Despite sluggish loan growth, they may post higher profits in the quarter

State Bank of India, country’s largest lender has paid the advance tax of Rs 1,202 crore in the first quarter against Rs 1,173 crore in the same period last year.

In addition, SBI has paid Rs 105 crore has been paid at our foreign offices, it said in a statement.

Indian companies are required to pay 15 per cent of their total tax on the projected earnings during the year during the first quarter. In next two quarters they have to pay 30 per cent and 25 per cent in the last quarter.

Banks have paid higher advance tax in the first quarter of the current fiscal. Banks generally pay up most of their taxes in the first half of the year. Despite sluggish loan growth, banks are expected to post higher profits in the current quarter due to rise in treasury gains.

Among the private banks ICICI Bank has paid Rs 600 crore up 20 per cent and HDFC Bank has paid Rs 685 crore up 37 per cent.

Among the foreign lenders Standard Chartered Bank paid Rs 300 crore while HSBC paid Rs 276 crore in the first quarter.

Today is the last date for the first quarter payments of advanced tax.