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50 Economic Survey 2021-22

2019. The corporate income tax registered a growth of 90.4 per cent over April-November 2020
and 22.5 per cent over April-November 2019 (Figure 5 and 6).

2.9 Among the various factors which may have led to such an increase in corporate tax
collection, improved profitability of the corporates, formalization of the economy and improved
compliance due to tax reforms are noteworthy. As per RBI, the gross profits of Listed Non-
Government Non-Financial Companies(sample) had grown by 132.5 per cent for manufacturing
sector and 21.5 per cent for IT sector during Q1 of 2021-22. In the following quarter Q2 of
2021-22, gross profits grew by 39.7 per cent for manufacturing sector and 18.4 per cent for IT
sector. In addition, various tax administration and policy reforms introduced by the Government
of India over the past few years (details may be seen at Annex) have also led to the improved
compliance. Data available at the time of writing this chapter was not adequate to meaningfully
separate out the net impact of these factors.

Figure 5: Growth in major direct and indirect taxes during April-November 2021

Source: CGA Monthly Accounts
Figure 6: Trends in major direct and indirect taxes during April-November period

5 4.0 4.5

4 2.9 3.5 3.5 3.3
lakh crore 3 1.9 2.7 2.4 2.0 2.4

2
₹ 0.8 0.6 1.3 1.3
1
0
Corporation Tax Taxes on Income Customs Union excise duties Gross GST to the
(other than Centre
Corporate tax)
DirectTaxes Indirect taxes
Apr-Nov 2019 Apr-Nov 2020 Apr-Nov 2021

Source: CGA Monthly Accounts