Tax collections for FY 21
The Ministry of Finance recently released the tax collection figures for the financial year 2020-21. According to the ministry, the direct tax collections for the financial year 2020-21 are Rs 9.45 lakh crores.
Tax collections for the fiscal year 2020-21
- The Direct Tax Collections include Personal Income Tax collections and Corporation Tax collections.
- The Personal Income Tax collected for the year 2020-21 was Rs 4.88 lakh crores.
- The Corporation Tax (or Corporate Tax) collected for the year 2020-21 was Rs 4.57 lakh crores.
Dross Collection of Direct Tax
The Gross Collection of Direct Tax for the year 2020-21 was Rs 12.06 crores. The gross collection of direct tax is the net amount before adjusting refunds. The other components of Gross Collection of Direct Tax are as follows:
- Corporation Tax: Rs 6.31 lakh crores
- Personal Income Tax: Rs 5.75 lakh crores
- Advance Tax: Rs 4.95 lakh crores
- Tax deducted at Source: Rs 5.45 lakh crores
- Self-Assessment Tax: Rs 1.07 lakh crores
- Regulator Assessment Tax: Rs 42,372 crores
- Dividend Distribution Tax: Rs 13,237 crores
In 2020-21, the GoI refunded Rs 2.61 lakh crores. This is 42.1% higher than that of 2019-20. In 2019-20, the GoI refunded Rs 1.83 lakh crores.
Definitions of Taxes
- Corporate Tax: It is the tax levied on profits of the companies.
- Personal Income Tax: It is the tax levied on salaries, wages, and other types of income of a person.
- Advance Tax: It is the income tax that should be paid in advance instead of lump sum payment at year end. The Advance Tax is also called earn Tax. It is the income tax a person must pay if his payable tax exceeds Rs 10,000. In such cases, the taxpayer pays in instalments.
- Tax Deducted at Source (TDS): It is the tax deducted from the money paid at the time of making specified payments such as commission, rent, salary, professional fees, etc.
Category: Economy & Banking Current Affairs
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