FY22 corporate tax mop-up rises up 58% at ₹7.23 tn
1 min read 12 Aug 2022, 11:25 PM ISTCompared to the pre-covid fiscal of FY20, the tax collection was 9% higher.
PremiumGovernment’s corporate tax collection in FY22 stood at ₹7.23 trillion, over 58% higher than the collection in the previous fiscal (FY21).
Compared to the pre-covid fiscal of FY20, the tax collection was 9% higher.
In a series of tweets, the Income Tax Department also said that the corporate tax mop-up in the current fiscal, as of 31 July witnessed a 34% year-on-year increase. It, however, did not give the amount of corporate tax collection during April-July (FY23).
“The positive trend of growth continues, but for the overall impact of the COVID-19 pandemic during FY 2020-21, when the corporate tax collections took a temporary hit," said another tweet.
The department said that the rise in collection indicates that the simplified tax regime with low rates and no exemptions has “lived up to its promise".
The government came up a with a new alternative tax regime in September 2019. With growth slowing down sharply in 2019-20, corporate tax rate was slashed to 22% for existing domestic companies and to 15% for newly incorporated manufacturing companies. The concessional rate of taxation was subject to the condition that the companies do not avail themselves of any tax incentives or deductions. Companies opting for the new regime were also exempted from the requirement to pay minimum alternate tax.
Centre had then said that the loss to the exchequer due to this tax-cut would be around ₹1.45 trillion. A recent report by a parliamentary panel showed that the estimated shortfall due to the move was ₹878.35 billion in 2019-20 and ₹964 billion in 2020-21.
