Surge in Direct Tax Collections for FY24
The Ministry of Finance has released provisional data indicating a robust increase in direct tax collections for the 2023-24 fiscal year. The figures show an impressive 18 per cent growth compared to the previous fiscal year, signaling a strong economic performance.
According to the ministry’s data, the net tax collections for FY24 reached Rs 19.58 lakh crore, a significant rise from Rs 16.64 lakh crore in FY23. This collection not only surpassed the previous year’s figures but also exceeded the government’s Budget Estimates (BE) and Revised Estimates (RE).
The BE for FY24 was pegged at Rs 18.23 lakh crore, while the RE was slightly higher at Rs 19.45 lakh crore. The actual provisional collection outdid these projections by 7.40 per cent and 0.67 per cent, respectively. The Gross direct tax collections for the same period stood at Rs 23.27 lakh crore, marking an 18.48 per cent increase from FY23’s Rs 19.72 lakh crore.
Corporate Tax collections showed a healthy uptick as well, with gross collections amounting to Rs 11.32 lakh crore, up by 13.06 per cent from the previous year. Net corporate tax collections also saw a rise, reaching Rs 9.11 lakh crore in FY24, which is a 10.26 per cent increase YoY.
In the realm of Personal Income Tax, including Securities Transaction Tax (STT), there was a notable jump. The gross personal income tax collection soared to Rs 12.01 lakh crore in FY24, marking a 24.26 per cent increase over the prior year’s Rs 9.67 lakh crore. Net personal income tax funds followed suit, with a 25.23 per cent rise to Rs 10.44 lakh crore in FY24 from Rs 8.33 lakh crore in FY23.
The Ministry also highlighted that tax refunds for the fiscal year were up by 22.74 per cent, amounting to Rs 3.79 lakh crore compared to Rs 3.09 lakh crore in the previous fiscal year.
These figures underscore a positive trend in revenue collection and reflect the government’s efficiency in tax administration. With such a substantial increase in direct tax collections, the fiscal health of the nation appears to be on a promising trajectory.
