Direct tax collections so far this fiscal rise 53.2% to Rs 2.58 lakh crore

Advance tax payment is the process of paying income tax before the end of the financial year, on income you earned in the same year. (Source: Shutterstock)

The net direct tax collections, which include income tax and corporate tax, reached Rs 2.58 lakh crore as of June 14 in financial year 2022-23 against Rs 1.86 lakh crore YoY, according to a CNBC-TV18 report, reigniting hopes of sustained economic recovery, despite inflationary concerns and the disruption caused by geopolitical tensions.

The net direct tax collection has increased by around 53.2 percent from April 1 to June 14 over the year-ago period.

The advance collection of corporate tax and personal income tax in the first quarter witnessed a healthy growth over last year, initial trends indicated.

The government expects the advanced tax collection in the first quarter to grow around 50 to 60 percent over last year.

Advance tax liability may arise for a person having salary as the primary source of income, but also having earning from other sources such as interest from deposits, rental income, capital gains and so on.

Advance tax is paid as and when the money is earned in four instalments rather than at the end of the fiscal year. It is regarded as a barometer of economic sentiment. The first instalment, equal to 15% of the annual tax, is due by June 15, the second by September 15 (30%), the third by December 15 (30%), and the balance by March 15.

The last date for payment of the first instalment of advance tax is June 15 every year. The deadline ends at midnight tonight.