Indian rupee investments
An employee counts Indian currency notes at a cash counter inside a bank in Kolkata June 18, 2012 (Representational image)Reuters File

Tax collection for the quarter ended June 2016 increased in the range of 24 to 31 percent on the back of tweaked rules for advance tax payment. 

Direct tax collection for the quarter was Rs. 1.24 lakh crore, up 24.79 percent in comparison to the corresponding period last year on account of changes in advance tax payment. 

"Earlier there were only three instalments of advance tax to be paid by individuals in the months of September, December and March. From the current year, individuals are also supposed to pay four instalments of advance tax at the rate of 15 percent, 30 percent, 30 percent and 25 percent in the months of June, September, December and March of every financial year," a government statement said on Friday.

Corporate tax collection (gross) was up 13.5 percent while personal income tax (including securities transaction tax) grew 29.8 percent. However, the net growth in corporation tax was 4.43 percent after accounting for refunds.

Indirect tax collection for the June quarter stood at Rs. 1.99 lakh crore, up 30.8 percent, on a year-on-year basis. The highest growth was in central excise at 50.1 percent, followed by service tax that rose 20.8 percent.

While direct tax collection has reached 14.63 percent of budget estimates, indirect tax collection as of June 30 represents 25.7 percent of budget estimates (of Rs. 7.78 lakh crore), the statement said.

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