Economic upswing: advance tax mop up move into positive growth
Economic recovery is clearly visible as advance tax collections were up 13.10 per cent at Rs 49,502 crore in the second quarter against negative growth of nearly six per cent in the previous qurter.business Updated: Sep 22, 2009 17:59 IST
Economic recovery is clearly visible as advance tax collections were up 13.10 per cent at Rs 49,502 crore in the second quarter against negative growth of nearly six per cent in the previous qurter.
However, 12 of the top 50 biggest tax payers among corporations paid less advance tax in the second qurter ended September 15, 2009, indicating that the upturn will take some time to spread to all sectors.
A Finance Ministry official exuded confidence that the third qurater advance collections will improve further as companies are supposed to do better in the coming festival season, even though drought would impact some of them.
According to Finance Ministry sources, advance mop up of corporate tax registered a 14.7 per cent growth at Rs 44,010 crore in the September quarter against a negative growth of 3.7 per cent at Rs 20,728 crore in the first quarter.
Similarly, personal income tax advance collections recorded a 1.7 per cent growth in the second quarter at Rs 5,492 crore against a drastic negative growth of 44 per cent in the first quarter, the sources said.
While country's largest lender SBI was the biggest tax payer at Rs 1,832 crore in the second quarter, up by 17.44 per cent, ONGC and RIL were on the second and third slots.
However, ONGC, SAIL, ICICI Bank, Citi Bank, Ambuja Cements paid less advance tax in the second quarter on yearly basis as their profits came under pressure.