Advance taxpayers are required to pay 15% of their annual income tax liability by June 15, 45% by September 15 and 75% by December 15.
Advance direct tax receipts from companies, limited liability partnerships (LLPs) and individuals grew 16.8% year-on-year in the third quarter of the current fiscal, reflecting some moderation in tax payments. However, the pace of collections is still higher than the budget estimates of gross (pre-transfer) direct tax receipts, which are at 12.4%.
Advance tax payments for the third quarter till December 15 stood at Rs 3.15 lakh crore, compared to Rs 2.7 lakh crore a year ago, sources said. The growth in advance tax receipts has moderated from 27.4% in the first quarter and 20.2% in the second quarter.
Corporate advance tax receipts grew 13.5% to Rs 2.28 lakh crore in Q3 FY25, as against Rs 2.01 lakh crore a year ago. Such receipts had grown 15.7% in Q2 of the current fiscal and 23.2% in Q1.
Advance personal income tax (PIT) receipts grew 26.5% to Rs 86,624 crore in Q3 FY25, as against Rs 68,459 crore a year ago.
Advance tax collections are a good indicator of corporate profitability and growth in income of individuals. Advance taxpayers are required to pay 15% of their annual income tax liability by June 15, 45% by September 15 and 75% by December 15.
Sources said the Centre’s direct tax collections (after refunds) grew by about 15.2% year-on-year to Rs 15.79 lakh crore till December 15 of the current fiscal. With a 12.7% year-on-year increase in direct tax collection requirement to achieve the target of Rs 22.07 lakh crore for FY25, trends indicate that it may be slightly exceeded. Direct tax collections have reached 71.5% of the annual target till December 15.
Corporate tax receipts till December 15 stood at Rs 7.42 lakh crore or 72.7% of the annual target, while income tax receipts stood at Rs 8.36 lakh crore or 70.4% of the annual target.
Direct tax refunds till December 15 of the current fiscal grew 49% year-on-year to Rs 3.35 lakh crore.
