Budget 2022: Good news on corporate tax

Corporate tax collections are likely to increase to ₹5.47 lkah crore in FY22 (according to budget estimates), compared with ₹4.46 lakh crore in FY21, reflecting a strong economic revival in spite of Covid-19. Tax collections had fallen to ₹5.56 lakh crore in FY20, from ₹6.63 lakh crore in FY19 as the pandemic ate into corporate profitability and reduced tax liability. Direct tax (which includes corporate tax and income tax) is a major source of revenue for the central government.