India’s net direct tax collections touched ₹14.7 lakh crore by January 10, meeting over four-fifths of this year’s target and reflecting a growth of 19.4% over the same period of 2022-23.
The Central Board of Direct Taxes on Thursday said that provisional direct tax collections continue to register ‘steady growth’ with gross collections rising 16.77% to ₹17.18 lakh crore, led by a 26.11% rise in Personal Income Tax (PIT) inflows. Corporate Income Tax or CIT collections grew at a relatively muted pace of 8.32%.
“After adjustment of refunds, the net growth in CIT collections is 12.37% and that in PIT collections is 27.26% (PIT only),” the Board said in a statement. Net of refunds, PIT and Securities Transaction Tax receipts were up 27.22%.
The net direct tax kitty has grown ₹1 lakh crore since December 17, when it had crossed ₹13.7 lakh crore. At the time, the growth was slightly higher at 20.66%.
“Direct Tax collection, net of refunds, stands at ₹14.70 lakh crore which is 19.41% higher than the net collections for the corresponding period of last year. This collection is 80.61% of the total Budget Estimates of Direct Taxes for F.Y. 2023-24,” the statement said.
Refunds amounting to ₹2.48 lakh crore had been issued to taxpayers by Wednesday, around ₹23,000 crore than the refunds that had been sent by December 17.
Rating agency ICRA said it expects the full year’s direct tax collections to exceed Budget estimates by ₹1 lakh crore, with a growth of around 18% over the provisional numbers for 2022-23.
“Direct tax revenues are projected to grow by 12% in 2024-25, based on expectations that benign levels of commodity prices would augur favourably on the profitability of corporates, and hence such tax collections and the continued efforts by the Government to improve compliance are likely to support personal income tax inflows amid widening of the tax base,” the firm’s economists said in a note on Thursday
