Q3 advance tax collections seen to presage economic revival
16 Dec 2009
In what is being seen as a sign of an economic revival in the offing, advance tax payments of most Mumbai-based corporate houses and banks have seen a substantial increase in the third quarter of 2009-10.
Advance tax revenue from major companies jumped 36 per cent to Rs10,700 crore in the third quarter of the current fiscal as against Rs7,900 crore for the same period last fiscal.
About 2,800 companies paid higher tax in the quarter under review, while about 700 companies paid less.
The total tax payment for the three quarters of the fiscal 2010 jumped 32 per cent to Rs27,200 crore from Rs20,600 crore. While there were 6,500 companies that paid higher tax, 1,500 companies saw a reduction in the outgo.
Mumbai, the country's financial capital contributes nearly 45 per cent of the country's tax revenue.
Analysts say that given the below-expectation collections in the first two quarters, the government may still miss the growth target of 26 per cent for the fiscal, even though the tax collection had been good in the Mumbai region in the third quarter.
