Net direct tax collections grow 5% to 9 lakh crores in FY21, says Finance Ministry

The net direct tax collections for the financial year 2020-21 grew by around five percent , which represent over 104 per cent of the revised estimates of Rs. 9.05 lakh crore as compared to previous year, a Ministry of Finance said in a statement on Friday.

The net direct tax collections include corporation tax at Rs. 4.57 lakh crore and personal income tax including security transaction tax at Rs. 4.88 lakh crore, ministry further said.

The ministry points out, "The net direct tax collections for FY21 have shown an upswing, despite the inherent challenges brought on by the COVID-19 pandemic on the economy."

For FY21, the advance tax collections stand at Rs. 4.95 lakh crore which shows a growth of approximately 6.7 per cent over against the preceding financial year of Rs. 4.64 lakh crore.

The gross collection of direct taxes (before adjusting for refunds) for FY21 stands at Rs. 12.06 lakh crore, including corporation tax at Rs. 6.31 lakh crore and personal income tax including security transaction tax at Rs. 5.75 lakh crore.

Besides, refunds amounting to Rs 2.61 lakh crore has been issued in FY21 as against Rs1.83 lakh crore issued in FY20, marking an increase of around 42.1 per cent, the statement reads.