Mumbai tops corporate tax collection in April-July 2021

There is buoyancy in direct tax collections in the country even during the second wave of the pandemic and corporate income tax is an important constituent of it. According to provisional data accessed by Money9, corporate tax collection across the country recorded a healthy jump. The data is for the period between April 1 and July 31, 2021, a large part of which was under the savage grip of the pandemic and attendant state-specific lockdowns.

While the all-India net collection figure during this period stood at Rs 1.44 lakh crore, Mumbai circle topped the chart with a corporate tax collection of almost Rs 50,972.4 crore. At the bottom stood the Guwahati circle with a collection of merely Rs 161.7 crore.

In other words, Mumbai’s collection was 315 times more than that of the Guwahati circle.

Mumbai tops

The country is divided into 18 circles, each led by a chief commissioner of income tax.

The total corporate tax collection in the first four months stood at Rs 1.44 lakh crore, and personal tax collection stood at Rs 1.53 lakh crore.

If we go through CCIT (chief commissioner of income tax) wise collection, it is clear that Mumbai’s collection is 35.28% of that of the pan-India figure.

Delhi, Bengaluru at 2 & 3

After Mumbai, Delhi came a poor second with only a collection of Rs 19,191.4 crore which is 13.28% of the nation’s collection.

The third place is held by Bengaluru that collected Rs 17,565.5 crore, or 12.16% of the nation’s entire corporate tax revenue for the first four months of the current financial year.

These three CCITs have collected almost Rs 88,000 crore or more than 61% of the total corporate tax collection. Rest 15 CCITs have collected almost Rs 56,000 crore in the first four months.

More than Rs 1,000 cr

Twelve CCITs out of 15 CCITs collected more than Rs 1,000 crore each.

Chennai collected Rs 9,216 crore corporate tax in the first four months of the current fiscal, followed by Hyderabad, Pune and Ahmedabad.

Hyderabad collected Rs 8,300 crore, Pune Rs 7,130 crore and Ahmedabad collected Rs 6,845 crore in the same time window.

Chandigarh comes next with a collection figure of Rs 6,334 crore.

CCIT Kolkata collected of Rs 5,500 crore, followed by Kanpur and Bhopal CCIT. Kanpur netted Rs 3,166 crore and Bhopal Rs 2,434 crore, respectively.

Jaipur, Bhubaneswar, Patna and Kochi come next with a collection amount of Rs 2,150 crore, Rs 1,880 crore, Rs 1,093 crore and Rs 1,082 crore, respectively.

Bottom three

CCIT Lucknow, Nagpur and Guwahati occupied the last three slots of the corporate tax collection table in the first four months.

Lucknow had a collection figure of Rs 827 crore, Nagpur came with Rs 612 crore and Guwahati’s figure is only Rs 161.70 crore, which constitutes 0.11% of the nation’s collection.

Cumulative collection of all the last three CCITs stood at Rs 1,600 crore, which is less than 3% of Mumbai’s collection.

Positive impact of  Q1 results

The corporate sector recorded overall healthy bottom lines during the first quarter of the current financial year.

In its recent report on the state of the economy Reserve Bank of India stated, “With a faster rise in sales relative to expenditure, both operating and net profits increased by more than 100% and, in fact, net profits increased by closer to 250% in April-June this year. The quarter also saw the sharpest increase in credit rating upgrades relative to downgrades since the beginning of the pandemic.”

The RBI’s observation was based on the results of 1,427 listed non-financial companies that declared their earnings. These corporates account for 86.8% of the market capitalisation of all listed nonfinancial companies in the country.