Corporate advance tax and personal income advance tax, both have been hit majorly.
The first-quarter advance tax collections received by the Central Board of Direct Taxes (CBDT) have seen an over 30 percent decline. Advance tax collections till June 15 have come in around Rs 12,000 crore versus Rs 50,000 crore last year.
The drop in direct tax collections was somehow expected as economic activity froze during the COVID-19 lockdown and both large and small taxpayers estimated limited profits.
Corporate advance tax and personal income advance tax have been hit majorly. But is COVID-19 only to be blamed for the poor performance?