Advance tax collection zooms nearly 33% to Rs 1.41 trillion in Dec quarter

Corporation advance tax jumps 50% in Q3

Indicating a sharp revival in direct tax mop-up, advance tax paid by companies in the December quarter rose by 50 per compared with the corresponding period last year, owing to a low base effect. 

It also indicates that the optimism among corporate houses about their earnings as the economy gradually recovers from the pandemic-induced shock. 

The robust revenue collection reinforces hope of a good economic performance in the third quarter of financial year 2020-21 (Q3FY21) after the surprising pickup seen in Q2. 

At Rs 1.41 trillion, overall advance tax collection, including corporation and personal income tax, rose by 33 per cent in Q3. 

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