Mortgage major HDFC on Monday reported 12 per cent increase in its advance tax outgo to Rs 465 crore for the first quarter of the current fiscal.
HDFC paid Rs 465 crore, up 12.05 per cent, from Rs 415 crore in the April—June quarter of 2014—15, company officials said.
For private sector lender Yes Bank, it was a 36 per cent jump to Rs 170 crore from the year ago’s Rs 125 crore, banking sector sources said.
Advance tax payments is a system of staggered payments of income taxes across the year done on a quarterly basis.
Typically, companies pay 15 per cent of their tax liabilities in the first quarter, which goes up as the financial year progresses.
The amount of taxes paid by a company is also a barometer of its performance for the period and how it sees the year turning up. It can also serve as an evidence to establish the credentials of the economy, especially in times when there are question marks over recovery.
Officials from the Income Tax department in the country’s financial capital, which contributes over a third of the direct tax collections in the country, were tight—lipped on the payments by corporates so far.