Advance Tax Collection Increases in Mumbai
Mar. 22 – Advance tax collection for the January-March quarter in the Mumbai region was up by 3.5 percent compared to the same period last year, indicating better profits for corporate India despite the financial crisis.
The Mumbai region contributes close to 40 percent of the total advance tax collections in India with the highest tax payer being the State Bank of India at Rs. 18.57 billion for the fourth quarter compared to the previous year.
Reliance Industries, the country’s largest private conglomerate, also paid higher taxes at Rs 7.7 billion, a rise of 52.6 percent from the previous Rs. 3.65 billion a year ago. It is anticipated that the company will formally report higher quarterly profits in April.
“The advance tax payment validates our view that Reliance will increase profits,” Deven Choksey, chief executive officer of K.R. Choksey Shares & Securities told Bloomberg, “Higher gas output and strong refining will push up profits.”
According to the Income Tax Department, advance tax on the current income based on Section 209 will be payable by all the companies in four installments per financial year.
The due date of each installment and the amount of the installment is scheduled on or before the 15th June and not less than fifteen percent; on or before the 15th September and not less than forty five percent; on or before the 15th December and not less than seventy five percent; and on or before the 15th March with the whole amount of such advance tax as reduced by the amount or amounts, if any, paid in the earlier installments.