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Tax collection of Rs 27 lakh crore in 2021-22, Rs 5 lakh crore more than budget estimates

Record Tax Collection In 2021-22: After two years of corona pandemic, the Indian economy has shown a spectacular recovery from lower levels in 2021-22. The government’s tax collection figures are testimony to this fact. The tax collection last year has been Rs 27.07 lakh crore, leaving behind the tax collection estimate of Rs 22.17 lakh crore for 2021-22. Which is Rs 5 lakh crore more than the target. Tax collection for 2021-22 is 34 per cent higher as compared to Rs 20.27 lakh crore in 2020-21.

According to the Finance Ministry, in 2021-22, there has been an increase of 49 percent in the collection of direct taxes, while the collection of indirect taxes has increased by 20 percent. Direct tax includes income tax paid by individuals, corporates and the total income tax collection in 2021-22 has been Rs 14.10 lakh crore, which is Rs 3.02 lakh crore more than the budget estimate. The indirect tax collection has been Rs 12.90 lakh crore, which is higher than the budget estimate of Rs 11.02 lakh crore. That is, a jump of Rs 1.88 lakh crore

On record tax collection, the Finance Ministry said in its statement that the reason for this jump in tax collection is the rapid economic recovery after the world’s largest vaccination program run by the government. It also symbolizes the strength of the economy. Apart from this, better compliance efforts regarding tax are also a big reason. This success has been achieved due to better compliance in both direct and indirect taxes by the tax department through the use of technology and artificial intelligence.

The gross corporate tax collection during 2021-22 has been Rs 8.6 lakh crore as against Rs 6.5 lakh crore in 2020-21. Which shows that the new simplified tax regime has lived up to its promise with lower rates and no exemptions. During this year, the Income Tax Department has returned refunds of 2.24 lakh crores to the taxpayers. During the last two years, efforts have been made to clear the backlog of refunds to bring cash in the hands of businesses. During the year, 2.4 crore refunds were issued, including 2.01 crore relating to the year 2021-22, for which returns were filed by 31 March 2021.

According to the Ministry of Finance, despite the corona epidemic, there has been a tremendous increase in GST collection. CGST revenue increased from ₹4.6 lakh crore last year to ₹5.9 lakh crore in 2021-22. The average monthly gross GST revenue in 2021-22 was 1.23 lakh crore, compared to Rs 94,734 crore in 2020-21 and Rs 1.01 lakh crore in 2019-20.

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