The direct tax collections for the first quarter as of June 14 have soared 53.2 percent to Rs 2.58 lakh crore versus the same period last year, showing a strong uptick in economic growth.

The initial trends of advance tax show healthy collections, and the government expects a growth of 50-60 percent year on year. The last date to pay the first instalment of advance tax for the financial year 2023 ends on Wednesday, June 15.

Advance tax means income tax that should be paid in advance instead of a lump-sum payment at the year-end. It is also known as pay as you earn tax. These payments have to be made in instalments as per the due dates provided by the income tax department.

Also Read:

Over 8,000 millionaires may migrate out of India in 2022 — here's why

Advance tax must be paid in four instalments during the relevant financial year.

If the advance tax is not paid, is paid short, or is paid after the due date, the taxpayer would be liable to pay dual interest at the rate of 1 per cent per month on the amount of tax to be paid.

In the last fiscal year, indirect taxes grew by 20 percent and direct taxes by 49 percent. The tax-to-GDP ratio in FY22 jumped to 11.7 percent, the highest since 1999. In FY21, the ratio was 10.3 percent.

The country's tax collections soared to a record high of Rs 27.07 lakh crore last year, compared with the Budget estimate of Rs 22.17 lakh crore.

Also Read: Tax department conducts search operations at Embassy Group on alleged tax evasion

First Published:Jun 15, 2022 4:58 PM IST