Whatever did not happen in the last 12 years regarding income tax , happened during the tenure of Modi government. The central government on Monday presented its account data for the financial year 2020-21. For the first time in 12 years, personal income tax has been higher than corporate tax. That is, ordinary taxpayers have paid more tax than companies and corporations.
For the first time the common man paid more tax
If we look at the data released by the Controller General of Accounts, it is found that in the financial year 2021, the corporate tax collection was Rs 4.57 lakh crore, while the income tax collection during this period was Rs 4.69 lakh crore. That is, personal income tax has been Rs 12,000 crore more than corporate tax. Income tax is levied on the income of individual taxpayers and HUFs. Whereas corporate tax is levied from companies on their profits.
Hence the fall in corporate tax collection
In the financial year 2020-21, there was a decline in both corporate and personal income tax, corporate tax has decreased by 18 percent and personal income tax by 2.3%. The biggest reason for this is that in September 2019, the Modi government had cut the corporate tax rate by 10 percent, it was directly reduced from 35 percent to 25 percent. The new corporate tax for existing companies is now 25%, while it is 17% for new manufacturing units.
The common man paid more tax even in the pandemic
In the year 2018-19, the corporate tax was 6.62 lakh crore, which was 18% more than its previous financial year, but now it is showing a decline for two consecutive years, the biggest reason for this is the sudden 10% in tax rates. impact of cuts and economic slowdown. Corporate tax collection fell by 16 percent in the year 2019-20, then it declined by 18 percent in the year 2020-21. If we look at the rough calculation, there has been a decline of 31 percent compared to the year 2018-19. If we look at the data of personal income tax collection, during the financial year 2020-21, despite the corona epidemic and lockdown, there has been an increase of 2.5 percent in personal income tax collection, while there was a decline of 6 percent in corporate tax collection during this period.
Tax collection increased in first 5 years of Modi government
Talking about the time when the Modi government took power in the year 2014, during that time the figure of corporate tax was 4.28 lakh crores while the income tax was only 2.65 lakh crores. In the year 2014 itself, the direct tax collection was Rs 6.95 lakh crore. In the first five years of the government, there was a huge jump in direct tax col…. Direct tax crossed Rs 10 lakh crore for the first time in the financial year 2017-18. Direct tax col… reached a record high of Rs 12,97,674 crore in the financial year 2018-19.
Tax collection dropped in last 2 years
But after the second term of PM Modi i.e. the year 2019, the situation changed. Due to the economic slowdown, the direct tax collection in the financial year 2019-20 came down to Rs 12,33,720 crore. The last financial year 2020-21 remained in the grip of Corona, due to which the direct fell to Rs 9.45 lakh crore.
