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Net direct tax collections grew 15.8 per cent to Rs 4.75 lakh crore from April 1-July 9 this year, an indication of economic activity and tax compliance measures, data released by the income tax department on Monday showed. With this, the government has achieved 26.05 per cent of its total budget estimate of Rs 18.23 lakh crore for 2023-24.
The revenue growth rate has improved from last month, when net direct taxes had grown 11.2 per cent till June 17.
On a gross basis, collection from direct taxes, which includes income and corporate taxes, grew 14.65 per cent to Rs 5.17 lakh crore.
“Direct Tax collection, net of refunds, stands at Rs 4.75 lakh crore which is 15.87 per cent higher than the net collections for the corresponding period of last year,” the statement said.
Refunds worth Rs 42,000 crore have been issued during April 1- July 9, 2023, which are 2.55 per cent higher than refunds issued during the same period in the preceding year.
As per the Budget 2023-24, direct tax collections are estimated to be Rs 18.23 lakh crore, out of which Rs 9.22 lakh crore is estimated to come from corporate tax and Rs 9.01 lakh crore from income tax. The government had collected Rs 16.67 lakh crore as direct taxes in FY 2022-23.
Vivek Jalan, Partner, Tax Connect Advisory, said, “The net direct tax collections have shown a surge of around 15% over last year. Considering inflation of 5% and GDP growth of 7%, there is still a buoyancy of around 3% which is a good buoyancy to have. The increase in direct tax collections is even more than the indirect tax collections which also shows that the same is also on account of non-GST registered entities and also reflects on the buoyancy of non-corporate earnings.”
Sumit Singhania, Partner, Deloitte India said, “…the trend yet again underlines enduring benefits of significant administrative reforms and digital adoption witnessed over the past couple of years. The big data environment will continue to enhance the quality of tax audits and reduce the time involved in such audits, both are key to incentivising voluntary compliances amongst taxpayers.”
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