The third quarter advance corporate tax collection from the top 100 companies from the city has shown a modest 15% growth year-on-year, backed by higher payouts by the banking and financial sector, according to income tax department sources.
The growth chart is led by the largest financial institution LIC, which has paid 10% more at R1,297 crore in advance tax payout for the third quarter compared to R1,166 crore in the same period a year ago.
However, the largest lender, State Bank of India, has paid marginally lower advance tax in the third quarter at R1,701 crore against R1,730 crore in the same period last year.
A statement from the State Bank said its total advance tax outgo this fiscal touched R4,694 crore against R4,484 crore paid in the corresponding period last fiscal, which is a growth of 4.5%.
Similarly, housing lender HDFC said it has paid R560 crore in advance tax against R475 crore in the year-ago period, a growth of 18%.
Advance tax is a staggered way of paying income taxes through the year. It is generally taken as a barometer of a company’s earnings for the period.
Mumbai contributes over a third of the overall direct tax collection. The I-T department is targeting to collect R1,78,453 crore from the city this fiscal, a 13.5% jump over last year.
Leading private sector banks like ICICI Bank and HDFC Bank have seen their tax payouts increasing.
While ICICI Bank has paid 35% more at R675 crore, up from R500 crore, the second-largest private sector lender HDFC Bank has paid R1,000 crore in the third quarter of this fiscal against R900 crore in the same period last fiscal. Bank of Baroda paid R550 crore compared to R525 crore last quarter while Central Bank of India paid R120 crore against R104 crore in the year-ago period.
Software major TCS has also seen a major spike in its tax outgo at R810 crore compared to R530 crore, which is a growth of over 50%, while Tech Mahindra has paid R60 crore, which is the same amount it had paid in the year-ago period.
However, the largest steel maker Tata Steel has seen its outgo more than halving to R529 crore against Rs.1,090 crore.