The direct tax collection in India has seen an 18% rise in the fiscal year 2022-23 so far, signaling a rebound in economic activity and an improvement in the country’s tax revenue. The figures were released by the Central Board of Direct Taxes (CBDT) on Monday.
According to the CBDT, the provisional figures for the direct tax collections for the financial year 2022-23 up to March 31, 2022, show a total net collection of Rs. 12.5 lakh crore. This is an increase of 18% from the same period in the previous fiscal year.
The increase in direct tax collections is seen as a positive sign for the Indian economy, which has been hit hard by the COVID-19 pandemic. The rise in tax revenue indicates a revival in economic activity and a recovery in the business sentiment.
The CBDT also reported that the net direct tax collection for the fiscal year 2021-22 was Rs. 12.06 lakh crore, which was higher than the revised estimates of Rs. 11.08 lakh crore. The figures indicate a growth rate of 47% over the previous fiscal year.
The government has been taking several measures to boost tax revenue and revive the economy, including the implementation of the Direct Tax Vivad Se Vishwas Act, which aims to provide an opportunity for taxpayers to settle their disputes with the tax department. The government has also been taking steps to improve compliance and reduce tax evasion, which is expected to lead to a further increase in tax revenue in the coming years.
The increase in direct tax collections is expected to provide a much-needed boost to the government’s finances, which have been strained by the pandemic. The government has been facing a significant revenue shortfall due to the slowdown in economic activity and the decline in tax revenue.
Overall, the increase in direct tax collections is a positive development for the Indian economy and is expected to provide a boost to the government’s efforts to revive the economy and improve tax revenue. However, the government will need to continue its efforts to improve compliance and reduce tax evasion in order to sustain the growth in tax revenue in the coming years.
