As of June 15 in the current fiscal year, gross tax collection has witnessed a notable 31% decline, with advance corporate tax collections experiencing a substantial 79% drop, according to an official statement on Tuesday.
Contrary to a previous report, PTI had incorrectly stated a 31% reduction in gross advance tax collection for the June quarter. The accurate information reveals that gross direct tax collection plummeted by 31% to Rs 1,37,825 crore in the first quarter of FY21, down from Rs 1,99,755 crore in the corresponding period of June 2019, as clarified by an income tax official to PTI.
The initial two months of the June quarter were marked by a nationwide lockdown aimed at curbing the spread of the coronavirus pandemic. This led to the closure of approximately 80% of the country’s economic activities. Despite a considerable easing of the lockdown measures from June 1 onwards, the economy has yet to fully return to normalcy.
It’s noteworthy that the deadline for the payment of advance taxes was June 15.