• Notification Date: 01.02.2022
• Notification No: N/A

Corporate Tax Collection rises in FY22

Corporate tax was massively affected in FY21 by the Covid-19 pandemic. But it has increased to 85% in the current financial year. There have been high improvements in the GST and income tax takings.

The Economic Survey for the Financial Year 2022 that has been presented in the Parliament on Monday has shown that the government has collected Rs.3.5 trillion as corporate tax during the period April-November FY22. The corporate tax collected during the same period in FY21 was Rs.1.9 trillion. In the pre-pandemic tax year FY20, the corporate tax collected during April-November was Rs.2.9 trillion.

The corporate tax collection during April-November FY21 has shown a 90% growth that that of FY20. The collection of personal tax has grown from 29.2% in April-November FY20 to 47.2% in April-November FY21. In April-November of Final Year 2022, the income tax collection amounts to Rs.3.5 trillion while that in the previous year was Rs.2.4 trillion.

The GST department has taken strict measures for the identification and rectification of the tax evaders and has brought evident improvements in the business activity. As a result, the collection of goods and service tax (GST) has been quite robust in FY22.

The effect of the first wave of the Covid-19 pandemic on GST collection was stronger than that of the second lockdown. But the nation has recovered quite rapidly after the downfall. GST revenue has sustainably grown in the last four years. The average monthly collection has been increasing from Rs.90,000 crore in Financial Year 2017-18 to Rs.1.19 trillion in the year 2021-22. 

Revenue receipts of the central government in April-November 2021 has increased by 67.2%. The Budget had an estimated growth of 9.6%. The monthly gross GST collection has gone up to cross Rs.1 trillion since July 2021.