Corporate advance tax collections in Mumbai give warning signals, indicating the tough situation ahead, following the global slowdown. The tax collection in Mumbai failed to meet its revenue target of 1.57 lakh crore for FY09 (April 2008-March 2009). Mumbai corporate tax collection contributes around 35-40% to the country's tax kitty. Tax collection has increased just 20% in the current financial year up to December, as compared to 60% in the same period last year.

The chief commissioner at income-tax department in Mumbai, P C Chhotray said, "While banking and infrastructure companies have posted a remarkable jump in tax payments so far this year, other sectors have not been able to keep up the tempo. The December collection is critical because 75% of the total advance tax payment in a year is paid out by this month."

Tax collection from Reliance Industries declined 26 per cent at Rs 2,044 crore. The largest finance company in the country, Reliance Capital, recorded 9 percent decline in tax payment. It paid Rs 90 crore taxes as compared to Rs 99 crore paid till December 2007. However, country's largest bank, the State Bank of India and largest private bank ICICI recorded 34% and 43% increase in tax payment respectively by December 2008.

HDFC Bank and Pharma major Wockhardt has paid Rs 687.5 crore and Rs 25.32 crore tax up to December 2008 respectively. Meanwhile, Tata group companies including Tata Steel, Tata Sons and Tata Power, Indian Hotels and Tata Motors have not paid advance taxes.