SBI, RIL pay higher advance tax for Q1
Mumbai: SBI and Reliance Industries, two of the highest tax payers in the financial capital, on Saturday showed increase in the first quarter advance tax outgoes.
State Bank of India said it paid Rs 1,202 crore in advance tax for the first quarter as against Rs 1,173 crore in the same period year ago.
Income tax sources told PTI that Mukesh Ambani-led Reliance Industries' outgo has increased to Rs 779 crore as against the Rs 768 crore in the same period year ago.
Mumbai contributes a sizable amount to the tax collection. Income Tax department officials here sounded satisfied with the collection trends after the payment of the first of the advance tax instalments by corporates.
Advance tax payments is a system of periodic payment of taxes in order to avoid lumpy outgoes in the final quarter. It is generally considered as a barometer of company's performance. Corporates typically pay 15 -18 percent of their tax liability in the June quarter.
SBI said its overseas branches have paid an additional Rs 105 crore, over and above the amount deposited with the Mumbai office for the first quarter.
Asian Paints paid Rs 60 crore for the first quarter as against Rs 55 crore it had paid in the same quarter the year ago, the I-T sources said.
Banks and financial institutions had shown an overall increase in their tax outgoes in the numbers which came in yesterday.