India’s Net Direct Tax Collections Surpass Estimates
The Indian tax department has reported a significant increase in net direct tax collections, with a 17.7% year-over-year growth, amounting to Rs 19.58 crore for the fiscal year that concluded in March 2024. This remarkable rise has not only exceeded the revised projections but also the budget estimates by a substantial margin.
According to the data, the net collections of income and corporation taxes, which form the crux of direct taxes, went beyond the revised estimates by Rs 13,000 crore. Additionally, they surpassed the budget estimates by Rs 1.35 lakh crore, marking a 7.40% increase. This performance is indicative of an economic upswing and an elevation in the income levels of both individuals and corporations.
In the interim Budget presented on February 1, the government had set an ambitious target for direct tax collection for FY24 (April 2023 to March 2024) at Rs 19.45 lakh crore. The gross tax collection target, as per the revised estimate, was pegged at Rs 34.37 lakh crore for FY24.
The provisional figures for gross direct tax collections in FY24 exhibited an 18.48% rise to Rs 23.37 lakh crore. After accounting for refunds, the net proceeds soared by 17.7% to Rs 19.58 lakh crore. The Central Board of Direct Taxes (CBDT) highlighted that refunds totaling Rs 3.79 lakh crore were issued during FY24, marking a significant increase from the previous fiscal year.
The CBDT’s statement emphasized that the provisional Direct Tax collections, net of refunds, have outdone both the Budget Estimate and Revised Estimates by 7.40% and 0.67%, respectively. The chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Kumar Agarwal, also conveyed satisfaction over the indirect tax collections for FY 2023-24, which have comfortably exceeded the Revised Estimates.
Breaking down the figures further, the Net Corporate Tax collection for FY 2023-24 registered a growth of 10.26% from the previous year, while the Gross Personal Income Tax collection, inclusive of Securities Transaction Tax (STT), surged by an impressive 24.26%. The Net Personal Income Tax collection, including STT, also reflected robust growth at 25.23% over the previous fiscal year’s figure.
This fiscal performance underscores a robust economic environment and serves as a testament to the efficiency of India’s tax system in mobilizing resources for development and governance.
