# Equirus calls for abolishing advance tax, trimming small savings 2026-08-14T06:09:25+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet Domestic brokerage Equirus has proposed scrapping the advance tax system and gradually tapering small-savings schemes to free up capital for productive use. In a report titled ‘India’s path to a $20 trillion economy’ released on Thursday, Equirus said abolishing advance tax could release about Rs 10 lakh crore in working capital while reducing compliance burdens. The system forces businesses to prepay taxes on income not yet earned, and penalises them if a weak quarter leads to revision. The report also flagged that administered rates on small-savings instruments like PPF (7 per cent) and Senior Citizens’ Savings Scheme (8 per cent) remain high even when market yields fall, distorting pricing. With the small-savings pool at roughly Rs 24 lakh crore and growing 14-16 per cent a year, Equirus suggested channelling even a fifth of that into market-priced bonds would move the needle. Advance tax accounts for about 38 per cent of gross direct tax collections, the report said. ## Coverage - thehindubusinessline.com Tags: advance tax, direct tax, Equirus, fiscal policy, PPF, small savings Canonical: https://indianopinion.org/equirus-calls-for-abolishing-advance-tax-trimming-small-savings/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/equirus-calls-for-abolishing-advance-tax-trimming-small-savings/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.