The note ban has badly hit advance tax collection from the megapolis that contributes one-third of the total corporate tax collection. The income tax department on Wednesday said the mop-up fell 10 percent on a year-on-year basis for the fourth quarter.
The department had collected Rs 1.01 lakh crore in advance taxes from the city in the March quarter of last fiscal.
"Overall advance tax collection from the Mumbai zone fell by 10 percent over the same period last year," an income tax official said while refusing to share details.
The official also declined to quantify the number or link the overall fall in mop-up to the demonetisation shock. Incidentally, none of the large corporates, which would share their tax payouts earlier, did so this time around. The overall lower payout could be attributed to the lingering impact of the note ban in the quarter.
Corporates and individuals stagger their tax payouts in four quarters – on the 15th of the last month of every quarter.
While in the first quarter they pay 15 percent of their projected annual tax liability, in the second and third quarters they pay up 25 percent each and the rest 35 percent in the March quarter.
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