Huge refunds dent direct tax collection

Corporate tax refund has lent a big dent to the direct tax kitty this year, with the figure touching a staggering Rs 48,426.20 crore till September 15.

The segregated collection figures available for the period April-September 15 shows that the income tax department did make a gross collection of Rs 1,18,489 crore from the corporate sector during April-September 15, but huge refund outgo pulled the net corporate tax collections down to just Rs 70,062.80 crore.

The refunds issued to the personal income tax payers during April-September 15 has been Rs 12,562.10 crore from a total of Rs 61,009.90 crore direct tax refunds issued in the period.

The gross personal income tax mop-up till September 15 stood at Rs 67,559.30 crore and net collection during the period has been Rs 54,997.20 crore.

Corporate tax refunds issued this year is nearly double of the Rs 25,975.20 crore total refunds given in both corporate and personal income tax till September 15.

Overall, direct tax refunds jumped 135 per cent during April-September 15 from the same period in 2010-11.

A senior finance ministry official said the huge refunds issued this year must be analysed in the context of tax payments in 2010-11.

The total direct tax collection in the last financial year grew by 18 per cent over 2009-10 collection by touching Rs 4,46,070 crore. Out of this, corporate tax collection was Rs 2,99,386 crore and personal tax realisation was Rs 1,45,997 crore.

In comparison, net direct tax collection in the current financial year till September 15 recorded a growth of only 6.7 per cent at Rs 1,27,858 crore as against Rs 1,19,849 crore collected during April-September 15 period last year.

The gross direct tax mop-up during the period has been Rs 1,88,868 crore, showing a growth of 29.5 per cent over previous year’s collection during April-September 15 of Rs 1,45,825 crore.
 

TAX TABLE Direct tax collection and refunds up to September 15, 2011 (in Rs  Crore)
Particulars	Corporate tax	Personal I-T	*Other taxes	Total
Gross Collection	1,18,489.00	67,559.30	2,820.40	1,88,868.70
Less: Refund	48,426.20	12,562.10	21.6	61.009.90
Net collection	70,062.80	54,997.20	2,798.80	1,27,858.80
*Other taxes include fringe benefit tax, wealth tax and share transaction tax Source: I-T Department

September 15 was the due date for payment of second instalment of advance tax and the revenue realisation during April-September 15 gives a clear indication on the likely tax mop-up prospects for the financial year.