I-T mops up Rs 14,000 cr as advance tax in Mumbai

Even with dismal performance of the oil and banking sectors, the income tax department has managed to mop up around Rs 14,000 crore as advance tax in the Mumbai zone alone in the current fiscal.

For the financial year, the tax collections till December 2004 stood at Rs 14,000 crore as against Rs 12,200 crore last year.

This is a preliminary assessment made by the income tax department, sources said, adding that the full picture will emerge in a few days.

According to official sources, this quarter's advance tax collection is marginally higher than what was collected in the same quarter last year.

While State Bank of India leads the pack of advance tax payers this quarter, having paid up Rs 600 crore, the Life Insurance Corporation has paid Rs 450 crore. The Bank of India and Central bank of India, which had been major tax payers earlier, have paid no tax for the quarter.

Indian Oil, which used to be one of the top tax payers till last year paying a whopping Rs 643 crore in the quarter ended December 2003 and Rs 158 crore as late as in the quarter ended September 2004 has paid no tax in the current quarter.

Similarly, HPCL paid 61 per cent lower tax, quarter on quarter, from Rs 247 crore to Rs 95 crore.

Sources said that while rise in oil prices have eaten into the margins of the oil retailing companies, rising interest rates have affected the treasury income of banks.

Although the non-food credit has gone up, there is a lag after which the interest income can flow into bank's balance sheets.

Other major tax payers include Tata Iron and Steel (Rs 395 crore), Indian Oil (Rs 350 crore), Hindalco (Rs 235 crore), Deposit Insurance and credit guarantee Corporation (Rs 200 crore).

Grasim Industries has paid Rs 135 crore in advance taxes while Reliance Industries has paid up Rs 150 crore.

In the quarter ended December 2004, the tax department had managed to collect 16 per cent higher advance tax than in the corresponding quarter of the previous year. It collected Rs 4,883 crore in the quarter ended December 2004 as against Rs 4,203 crore in the quarter ended December 2003.