Advance tax collections grow by 6.1% in state

Advance tax collections grow by 6.1% in state

Advance tax collections in the state recorded 6.1% growth in 2014-15 till September 15, in what could be seen as initial signs of revival of economy. According to the latest data of the income tax department, Rs 11,680 crore in taxes were collected by September this year in comparison to Rs 10,998 crore last year during the
same period.

The highest collection of Rs 7,108 crore is recorded in the Ahmedabad zone in the first half of financial year 2014-15 against Rs 6,404 crore collected in the same period last year. Axis bank emerged as the bigest contributor with tax dep[osit of Rs 1,800 crore, up by Rs 300 crore from the last year followed by top pharmaceutical companies, Adani Ports, Vodafone and DSFC.

Cadila Healthcare which had zero deposits in advance tax last year among pharmaceutical companies, deposited Rs 75 crore this year while Torrent Pharma’s deposits recorded an increase of Rs 10 crore in comparison to the last year.

In the total advance tax collections, corporates deposites Rs 7,10 crore while non- corporates deposits Rs 4,500 crore. Overall the country recorded growth of 7.1% in advance tax collections compared to the previous year. Advance tax collections had reported shortfall in the last fiscal year, owing to the economic slowdown , rising bad loans in banks and payment of lesser taxes by major corporates. Income tax department had collected Rs 27,400 crore against the target of Rs 31,900 crore according to collection figures of the last year.

An income tax department official said that every year the advance tax target is increased by 30% and with slowdown affecting the industries, the collections have fallen.

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