Advance tax mop-up for July-Sept period shows healthy trend

The second quarter of the current financial year (FY23) has seen a healthy advance tax collection as provisional reading shows that Rs 1.81 lakh crore came into the government's coffers, which is a 22 percent jump when compared to the same period last year.

Advance tax payment is the process of paying tax before the end of the financial year, on the income one earned in the same year.

As usual, most of the advance tax collection has come in from the corporate sector which has filed taxes worth Rs 1.29 crore, a jump of 21 percent from last year.

The second quarter tax deduction at source or TDS has also seen an upswing of 35 percent.

Overall, the second quarter net tax collections are up 26 percent with a reading of Rs 5.86 lakh crore. The gross tax collections are up 34 percent at Rs 7.20 lakh crore.

The income tax department has also seen an outgo in terms of refunds to tax filers which have grown by 84 percent when compared to the same period last fiscal.