Advanced tax collection up in Q2

New Delhi, Sep 22 (PTI) Advanced corporate and personal
income tax collections have registered positive growth in the
second quarter against negative growth in the first, showing
signs of a clear economic upturn.

Corporate tax and personal income tax grew by 14.7 per
cent and 1.7 per cent respectively in the second quarter
ending September 15, 2009, against the negative growth of 3.7
per cent and a drastic fall of 44 per cent in the first
quarter.

However, 12 of the 50 largest corporate tax payers paid
less advanced tax in the second quarter year-on-year, Finance
Ministry sources said.

Advanced corporate tax for the second quarter stood at Rs
44,010 crore against Rs 38,367 crore in the year-ago quarter.
In the first quarter ending June 15, 2009, it was Rs 20,728
crore compared to Rs 21,515 crore in the last year quarter.

Advanced personal income tax was Rs 5,492 crore in the
second quarter compared to Rs 5,398 crore year ago. In the
first quarter, it stood at Rs 725 crore, down from Rs 1,296
crore in the corresponding quarter last year, sources said.

Analysts said this clearly shows revival of economic
activities fueled by stimulus packages of lower taxes and cut
in interest rates.

However, many large companies like ONGC, SAIL, ICICI
Bank, Tisco, HSBC, Citi Bank and Ambuja Cements paid less
advanced taxes in the second quarter than a year-ago period.

SBI is the largest tax payer followed by ONGC and RIL,
sources said. PTI