Jun 30, 2018
Q1 numbers: PIT advance tax up 44%, indirect taxes up sharply
The Centre’s fiscal deficit in April-May stood at 55.3% of Rs 6.24 lakh crore estimated for all of 2018-19, compared with 68.3% of the relevant annual estimate in the year-ago period, in what reflected a relative moderation in front-loading of revenue spending. Indirect tax receipts, a proxy of consumption in the economy, grew at robust 59% in the two-month period; however, huge corporate tax refunds led to a year-on-year decline in direct tax collections.Union minister Arun Jaitley wrote in a blog that “the first big news for this year is that the advance tax deposit during the first quarter of this year has seen a gross increase of 44% in the personal income tax category and 17% in the corporate tax category”.But the minister added that after repayment of refunds due to some excess tax paid in earlier years, usually paid back in the first quarter, the net advance tax amount would be somewhat less. “But if the same trend continues in the next three quarters, one expects a significant increase in the direct tax collection this year,” he wrote.