India’s Direct Tax Collections Surpass Estimates
In a robust display of fiscal performance, India’s net direct tax collections experienced a significant uptick, registering a 17.7% growth for the fiscal year 2023-24. The collections amounted to an impressive ₹19.58 lakh crore, slightly exceeding the government’s revised estimates. This surge is attributed primarily to the increased contributions from personal income taxes, which now constitute 53.3% of the total tax revenue, up from 50.06% in the preceding year.
Contrastingly, the share of corporate taxes witnessed a slight decline, representing 46.5% of the total tax pool, down from 49.6%. The provisional data from the Finance Ministry highlighted a notable rise in personal income tax (PIT) and securities transaction tax (STT) collections towards the end of March, which contributed to this fiscal accomplishment, while net corporate tax collections saw a marginal decrease.
As March concluded, the second-highest gross GST revenue was recorded at ₹1.78 lakh crore, propelling the financial year’s total GST collections to a substantial ₹20.2 lakh crore. This performance underscores the strength of India’s tax collection mechanisms and the buoyancy of its economy.
The detailed figures reveal that by March 17, tax collections had risen by 19.88% to ₹18.9 lakh crore, with PIT and STT accounting for over half of this amount. By the end of March, an additional ₹73,000 crore in PIT and STT inflows were recorded, bringing their cumulative figure to ₹10.44 lakh crore.
While gross corporate tax collections saw an increase, net receipts after refunds dipped slightly from ₹9.14 lakh crore to ₹9.11 lakh crore. Nonetheless, the overall gross direct tax kitty for 2023-24 stood at ₹23.37 lakh crore, marking an 18.5% increase over the previous year’s tally.
The Finance Ministry also noted that tax refunds surged by 22.74% in 2023-24, amounting to ₹3.79 lakh crore. Despite this increase in refunds, the net direct tax collections not only surpassed the Budget Estimates by 7.40% but also edged past the Revised Estimates by 0.67%, showcasing a resilient fiscal landscape and effective tax administration.
