Advance Tax Collections Rise 

Worried about economic recovery? Here’s an indication. Advance tax collections in Q3 are up 50 per cent YoY compared to 51.2 per cent in Q2. And direct tax collections, net of refunds, were up 61 per cent till December 16, touching Rs 9.45 lakh crore; that’s 40 per cent higher than the same period in 2019-20, and 85.2 per cent of this fiscal’s budget target of Rs 11.08 lakh crore. Among direct tax components, corporation tax collection is up 70 per cent, and personal income tax, 52 per cent. “The better-than-expected tax collections are a result of improved economic outlook, better enforcement and easier compliance,” said a government official. The best part: the collections give the government the resources to fuel economic recovery amid Omicron fears.