Net Direct Tax Collection Surges by 22% to Rs 9.57 Lakh Crore

The net direct tax collections surged by 21.82% year-on-year (YoY) to more than Rs 9.57 lakh crore as of October 9, 2023, as per the Central Board of Direct Taxes (CBDT). The net collections have reached 52.5% of the total budget estimates of direct taxes for the financial year 2023-24 (FY24).

The provisional figures of the direct tax collections highlighted that gross collections are at Rs. 11.07 lakh crore. This is 17.95% higher than the gross collections for the comparable period of 2022. 

Corporate Income Tax (CIT) growth rate clocked at 7.3%, and Personal Income Tax (PIT) surged to 29.53% in terms of gross revenue collections, as per the Finance Ministry’s Revenue Department.

Until now, as 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 stood at 7.3% while that for PIT is 29.53% (PIT only)/ 29.08% (PIT including STT).

After minusing refunds, the net growth in CIT collections is 12.39%, and that in PIT collections is 32.51%(PIT only)/ 31.85% (PIT including STT).

The refunds to the tune of Rs 1.5 lakh crore have been issued from April 1, 2023, to October 9, 2023. The rise in direct tax collection underscores the success of the government’s initiatives on enforcement and technology usage in the overall tax collection process.

The 2023-24 budget has pegged the direct tax collection at a bit over Rs 18.23 lakh crore, which is 9.75% higher than Rs 16.61 lakh crore mopped up in the financial year 2021-22.

Similarly, India’s fiscal deficit for the first five months of the financial year 2023-24 stands at Rs 6.43 lakh crore, which is 36%t of the estimate for the whole year, as per the government data.