Advance corporation tax mop-up drops over 5% in Dec quarter to Rs 73,000 cr

Net collection grows only 0.7% to Rs 6.75 trillion

The collection of advance tax paid by companies fell 5.2 per cent in the October-December quarter of this fiscal year while the mop-up of personal income tax saw marginal growth, which may make it difficult for the government to cut income-tax rates now. Sources attributed the drop in corporate advance tax to the slowdown in the economy and reduction in tax rates. 

Advance corporation tax collection fell to Rs 73,000 crore in the third quarter compared with Rs 77,000 crore a year ago while personal income tax paid in advance rose to Rs 33,000 crore against Rs 24,000 crore over