The finance ministry on Saturday reported about 22.6% annualised growth in gross direct tax revenue at ₹16.68 lakh crore as on March 10, with significant improvement in corporate and personal income-tax collections that indicate sustained growth in economic activities, better tax administration and ease of compliance.
“Direct Tax collection, net of refunds, stands at ₹13.73 lakh crore which is 16.78% higher than the net collections for the corresponding period of last year,” provisional data released by the finance ministry said.
The net collection is higher even after higher refunds. “Refunds amounting to ₹2.95 lakh crore have been issued during 1st April, 2022 to 10th March 2023, which are 59.44% higher than refunds issued during the same period in the preceding year,” it said.
The total net collection of ₹13.73 lakh crore is 96.67% of budget estimates (BE) and 83.19% of revised estimates (RE) of direct taxes for the year to March 31, it said. The BE of direct tax collection was ₹14.20 lakh crore in 2022-23, which was later raised to ₹16.50 lakh crore in RE, anticipating better collections due to the robust economy, an official said, requesting anonymity.
The government had estimated corporation income tax (CIT) collections in 2022-23 (BE) at ₹7.20 lakh crore and estimated taxes on income or personal income tax (PIT) at 7 lakh crore, according to budget documents. Later, it raised CIT to ₹8.35 lakh crore in RE for 2022-23 and PIT to ₹8.15 lakh crore. The target or BE for the coming financial year is even higher – CIT at ₹9.23 lakh crore and PIT at ₹9 lakh crore.
{{/usCountry}}The government had estimated corporation income tax (CIT) collections in 2022-23 (BE) at ₹7.20 lakh crore and estimated taxes on income or personal income tax (PIT) at 7 lakh crore, according to budget documents. Later, it raised CIT to ₹8.35 lakh crore in RE for 2022-23 and PIT to ₹8.15 lakh crore. The target or BE for the coming financial year is even higher – CIT at ₹9.23 lakh crore and PIT at ₹9 lakh crore.
{{/usCountry}}“So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 18.08% while that for PIT (including Securities Transaction Tax or STT) is 27.57%,” the finance ministry said in it statement. After adjustment of refunds, the net growth in CIT collections is 13.62% and that in PIT collections is 20.73% if taken alone, and 20.06% if PIT and STT are included.