Advance tax collection for the third quarter of the financial year 2009-10 has gone up by 24 per cent from the same period last year, following robust collection from the private sector.
According to data collated by the income tax department for the top 100 companies paying tax here, total collection for the third quarter was Rs 13,042 crore as against Rs 10,504 crore for the corresponding period last year. Cumulative tax collection from the top 100 companies till December was Rs 39,092 crore.
Officials said the third quarter collections are significant, since it gives an indication of the economy and ability of the revenue department to achieve the total target set for the year. Mumbai contributes a third of the country’s total tax collection, with the top 100 companies contributing the bulk, said an official.
They added the overall performance by the private sector have compensated the moderate or, in some cases, muted collection from the public sector, which had been the saving grace for the last two quarters. “ Though, in most cases, barring a few companies in the private sector, those companies are paying up which had paid less tax in the first two quarters. This is tax planning for the companies and not a direct indicator of robust economic growth”, said the official.