Advance tax collections in September have grown a robust 32.5 per cent to Rs 21,593 crore (Rs 215.93billion), from Rs 16,287 crore (Rs 162.87 billion) in the same month last year. The buoyancy is mainly due to the ballooning corporate and income tax collection.

Companies and individuals have to pay advance tax by September 15. Tax collected during September 1-15 is usually counted towards advance tax. This is the second tranche of advance corporate tax.

According to revenue department data, advance corporate tax collection stood at Rs 17,273 crore (Rs 172.73 billion) during the period, against Rs 13,142 crore (Rs 131.42 billion) a year ago, a rise of 31.4 per cent.

Similarly, advance income tax collected during the period was Rs 4,320 crore (Rs 43.20 billion), compared with Rs 3,145 crore (Rs 31.45 billion) during September 2005, an increase of 37 per cent.

AK Sinha, spokesperson for the Central Board of Direct Taxes, said the final advance tax collection figure was expected to be higher by another Rs 10,000 crore (Rs 100 billion).

Advance corporate tax collection for the year till September rose to Rs 30,898 crore (Rs 308.98 billion), an increase of over 30 per cent, from Rs 23,708 crore (Rs 237.08 billion) in the same period last year. Total advance income tax collection stood at Rs 6,237 crore (Rs 62.37 billion), an increase of 28 per cent from Rs 4,884 crore (Rs 48.84 billion) in the same period last year.

Collection has been robust in all the metros barring Chennai, where growth was a modest 17 per cent. The collection in Delhi was Rs 9,500 crore (Rs 95 billion), up from Rs 5,400 crore (Rs 54 billion) up to September last year, an increase of 75 per cent. The rise in Mumbai was 63 per cent at Rs 14,500 crore (Rs 145 billion) against Rs 9,000 crore (Rs 90 billion) up to September last year.