Direct tax collections surge in 2021-22

Economists said the tax collections suggest the first quarter of this year could record double-digit growth.

India’s direct tax collections in the first two and a half months of 2021-22 stand at nearly ₹1.86 lakh crore, double the collections over the same period of last year that was affected by the national lockdown, the Finance Ministry said on Wednesday. Economists said the tax collections suggest the first quarter of this year could record double-digit growth. "The jump in the direct tax collections in Q1 FY2022 relative to Q1 FY2021, reflects healthy exports and a continuation of various industrial and construction activities, given the lower stringency of the staggered regional lockdowns in 2021 vs. the nationwide lockdown in 2020. This supports our expectation that GDP will record a double-digit expansion in Q1," said Aditi Nayar, chief economist at rating agency ICRA.