News

Published: November 13, 2023
Updated: November 13, 2023

India's Direct Tax Collection Soars 17.6% to Rs 12.3 Trillion, Surpassing Projections

In a testament to robust economic performance, India's gross direct tax collection has surged by an impressive 17.6%, reaching Rs 12.3 trillion as reported by the Central Board of Direct Taxes (CBDT). This significant increase, surpassing government projections, paints a positive picture for the country's fiscal health.

Stellar Growth in Direct Tax Collection:

From April 1 to November 9, the gross direct tax collection witnessed a remarkable year-on- year growth of 17.59%, totaling Rs 12.37 trillion. Net of refunds, direct tax collection stood at Rs 10.6 trillion, marking a substantial 21.82% increase compared to the same period last year. Notably, refunds totaling Rs 1.77 trillion have been issued during this period.

Government's Ambitious Projection:

The government had set an ambitious target of achieving a 10.5% growth in revenues from corporate and individual income tax, aiming to reach Rs 18.23 trillion in the current financial year. The latest data suggests that India is well on track to surpass this ambitious revenue target.

Breakdown of Growth Rates:

Breaking down the growth rates, the corporate income tax (CIT) has seen a 7.13% increase on a gross basis, while personal income tax (PIT) has shown a remarkable growth of 28.29%. Adjusting for refunds, the net growth in CIT collection stands at 12.48%, and for PIT, it reaches an impressive 31.77%.

Future Projections:

Looking ahead, the gross collection is anticipated to grow by 10.1% year-on-year, with net collection expected to increase by 11.1% in the fiscal year 2023-24. Despite subdued growth in the initial months, September saw a substantial 27% year-on-year growth in corporation tax collection, fueled by healthy advance tax inflows.

In a Nutshell (FY24 Highlights):

● Net growth in Corporate Income Tax (Y-o-Y): 12.48%
● Net growth in Personal Income Tax (Y-o-Y): 31.77%
● Refunds Issued: Rs 1.77 Trillion