New Delhi, Mar 18 (KNN) The Centre's advance direct tax receipts for the fourth quarter of the current fiscal from companies, LLPs, and individuals have increased by a notable 6 per cent quarter-on-quarter, reaching Rs 2.85 trillion as of March 15 of the current financial year.

This sequential rise in advance tax collections in Q4 follows a 19 per cent annual increase in advance tax receipts for the third quarter of FY24, suggesting sustained traction in economic activity.

Advance tax collections serve as a reliable indicator of corporate profitability and individual earnings, with March 15 marking the deadline for fourth-quarter advance tax payments by companies and individuals.

Despite experiencing higher refunds during the period leading up to March 15, direct tax receipts (post-refund) amounted to Rs 18.91 trillion, representing 97 per cent of the full-year revised estimate of Rs 19.45 trillion for FY24. This indicates that receipts for the full year are poised to surpass the revised estimate.

The additional collections (post-devolution) are expected to assist the Centre in maintaining the fiscal deficit within the revised estimate of 5.8 per cent of GDP in FY24, despite a slightly lower nominal GDP size than initially projected.

In the budget unveiled on February 1 this year, the Centre augmented the direct tax receipts target by Rs 1.22 trillion to Rs 19.45 trillion, primarily attributing the increase to buoyancy in personal income tax receipts.

As of March 15 of the current fiscal year, refunds amounted to Rs 3.34 trillion, marking a 9 per cent increase compared to Rs 3.07 trillion in the entirety of FY23, indicating accelerated processing of refunds.

The continuous rise in corporate profitability across diverse sectors contributed to the sustained buoyancy in the quarterly advance tax mop-up.

Advance tax receipts witnessed an upward trajectory, starting from Rs 1.17 trillion in Q1FY24, escalating to Rs 2.39 trillion in Q2, Rs 2.7 trillion in Q3, and finally reaching Rs 2.85 trillion in Q4FY24.

The rise in corporate profitability across various sectors led to continued buoyancy in the quarterly advance tax mop-up. Advance tax receipts rose from Rs 1.17 trillion in Q1FY24, Rs 2.39 trillion in Q2, Rs 2.7 trillion Q3 and Rs 2.85 trillion in Q4FY24.

Until March 15, direct tax collections predominantly comprised corporation tax, amounting to Rs 9.16 trillion, which translates to 99.2 per cent of the FY24RE.

Despite the Rs 1.22 trillion increase in the target for FY24RE, income tax receipts, including securities transaction tax (STT), totalled Rs 9.75 trillion, equivalent to 95.4 per cent of the FY24RE.

So far in the current fiscal, TDS and TCS receipts stood at Rs 10.3 trillion, securities transaction tax at Rs 34,130 crore and equalisation levy of Rs 3,527 crore.

(KNN Bureau)