Corporate Tax Collection Soars 34% In First Four Months Of FY 2022-23

The tax department said the positive trend of growth continues after tax collections took a temporary hit during FY 2020-21 due to the Covid-19 pandemic.

Indian Currency

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India has registered a 34 per cent growth in corporate tax collection in the first four months of the current fiscal year compared to the corresponding period of the fiscal year 2021-2022. In a series of tweet, the income tax department said the corporate tax collections during FY 2021-22 registered a growth of over 58 per cent as compared to the tax collection of FY 2020-21.

"The corporate tax collections during FY 2021-22 at Rs. 7.23 lakh crore registered a growth of over 58% as compared to the tax collection of FY 2020-21. Even when compared to collections of FY 2018-19 (pre-COVID period), the collections of FY 2021-22 are higher by over 9 per cent. Even when compared to collections of FY 2018-19 (pre-Covid period), the collections of FY 2021-22 are higher by over nine per cent," it said.

The corporate tax collections during FY 2022-23 (till 31st July, 2022) register a robust growth of 34% over the corporate tax collections in the corresponding period of FY 2021-22. (1/4)@FinMinIndia

— Income Tax India (@IncomeTaxIndia) August 12, 2022

The tax department said the positive trend of growth continues after tax collections took a temporary hit during FY 2020-21 due to the Covid-19 pandemic.

“This indicates that the simplified tax regime with low rates and no exemptions has lived up to its promise," the department added.

Earlier in April this year, the finance ministry stated that the focus on capex in the Budget for the current fiscal year will boost manufacturing and tax revenue collections in a bid to becoming a $5 trillion economy.

In the last fiscal year, tax revenues witnessed 34 per cent growth to Rs 27.07 lakh crore, which the finance ministry called it a "a remarkable testimony to the rapid recovery" of the economy following successive waves of Covid-19 pandemic.

The department had added that apart from a brief setback owing to Covid-19, the government has maintained the nominal GDP growth rate above 10 percent in recent years. GST, a simplified way of collecting indirect taxes, has been a revolutionary step propelling India's GDP.