Direct tax mop-up crosses half of Budget Estimates at halfway point

Collection 28% higher over the same period in 2019-20, brightening economic recovery prospects

The Centre’s direct tax collection after refunds crossed half the FY22 Budget Estimates by September 16, posting 73 per cent growth year-on-year on the back of a robust advance tax mop-up for the second quarter and a lower refund outgo.

The better-than-expected revenue mop-up was also higher by 28 per cent over the same period in 2019-20, brightening economic recovery prospects after the second Covid-19 wave, which disrupted economic activities in the first quarter.

The mop-up stood at Rs 5.66 trillion against Rs 3.28 trillion last year after the second instalment of advance tax was paid.

The Budget Estimates for the current financial