India’s Direct Tax Collections Witness Robust Growth
In a remarkable financial performance, India’s direct tax collections have shown a significant uptick in the fiscal year ended March 2024. The country’s net direct tax collections soared by an impressive 17.7 percent year-on-year, reaching a total of Rs 19.58 lakh crore. This figure not only eclipses the initial Budget estimates but also comfortably surpasses the revised projections.
The Central Board of Direct Taxes (CBDT) highlighted that the net collections of income and corporate taxes, which constitute a major portion of direct taxes, exceeded the Budget estimates by Rs 1.35 lakh crore, marking a 7.4 percent increase. Furthermore, the collections outpaced the revised estimates by Rs 13,000 crore.
Reflecting a vibrant economy and an uptick in income levels among individuals and corporations, the gross direct tax collections (provisional) for the FY 2023-24 escalated to Rs 23.37 lakh crore, marking an 18.48 percent growth. After accounting for refunds, the net proceeds stood at Rs 19.58 lakh crore.
The CBDT also reported that refunds totaling Rs 3.79 lakh crore were issued during the fiscal year, which is a 22.74 percent increase over the previous year’s refunds. These refunds are part of the government’s commitment to expedite the refund process for taxpayers.
Analyzing the components of the tax collections, the provisional gross corporate tax collection for FY 2023-24 witnessed a 13.06 percent rise to Rs 11.32 lakh crore. Meanwhile, the net corporate tax collection grew by 10.26 percent to Rs 9.11 lakh crore.
On the personal income tax front, including Securities Transaction Tax (STT), there was a remarkable surge of 24.26 percent in gross collection, amounting to Rs 12.01 lakh crore. The net personal income tax collection, inclusive of STT, showed an even more impressive growth of 25.23 percent, reaching Rs 10.44 lakh crore.
This fiscal year’s performance indicates not only a robust economic environment but also suggests an effective tax administration and compliance framework in place, contributing to the healthy state of tax collections in India.
