The Centre’s direct tax revenue has exceeded the revised Budget target for the first time in four years on the back of robust advance tax mop-up for 2020-21 (FY21), providing a buffer to the otherwise fiscally stressed government. With the payments of the last instalment on Monday, advance tax collection for FY21 was around 7 per cent higher than last year’s.

Net direct tax collection stood at Rs 9.18 trillion as of March 16, exceeding the Rs 9.05 trillion revised Budget target. It is, however, 4 per cent lower than the last year’s collection of Rs 9.56 ...