For the first time in 12 years, income tax collections were higher than the corporation tax collected by the government. Income tax primarily consists of tax on income paid by individuals and Hindu Undivided Families (HUFs). In this scenario, it is surprising that the corporation tax collections in 2020-21 were lower than the income tax collected. This shows that income tax rather than corporation tax should have been cut in September 2019. This has led to a weird situation where income tax collections have been higher than the corporation tax collected.

Source: Mint June 01, 2021 08:03 UTC