NEW DELHI: Direct tax collections grew 15.2% to Rs 14.3 lakh crore in the current financial year up to Sept 17, driven by a faster growth in the corporation tax mop-up.Latest data released by the income tax authorities pointed to a mild pick-up in advance tax payments, whose second installment had to be deposited by Sept 15. Overall, advance tax payments were up 16.2% to Rs 5.2 lakh crore, as against a 15.3% rise in the first installment paid in June.Within this, the payout by companies was estimated to have increased by 18.1% to a little under Rs 4.2 lakh crore, which was again faster than the 16% growth clocked in June. In case of personal income tax, however, growth slowed from 12.8% to 9.2% (around Rs 10.6 lakh crore after the second installment).Advance tax is seen as an advance barometer of economic activity. A faster growth in corporation tax numbers points to expectations of higher profitability in the second quarter, amid strong sales in key segments of the economy.Refunds saw a significant increase, rising 29.2% to Rs 2.2 lakh crore in the fiscal year up to Sept 17. Non-corporation tax, which is personal income tax, refunds more than doubled to Rs 81,439 crore, the official numbers showed. As a result, net collections were estimated to have gone up 13% to Rs 12.1 lakh crore.“Net direct-tax collections are showing both strength and resilience, driven by stronger gross tax inflows, enhanced compliance, and sustained economic and market activity. The most encouraging signal is that net collections have continued to rise, despite a substantial increase in refunds,” said Hitesh Sawhney, a partner at consulting firm Price Waterhouse & Co.
