India’s Net Direct Tax Collections Exceed Expectations
In a remarkable fiscal performance, India’s net direct tax collections for the fiscal year ended March 2024 have shown an impressive surge, outstripping the revised estimates significantly. According to the tax department’s announcement on Sunday, collections have grown by 17.7 percent year-on-year, reaching Rs 19.58 crore.
The robust collections are primarily due to income and corporate taxes, which constitute a major portion of the direct taxes. The financial year 2023-24 saw these collections surpass the Budget estimates by Rs 1.35 lakh crore, which is a 7.40 percent increase, and they also exceeded the revised estimates by Rs 13,000 crore.
Earlier, the government had adjusted the target for direct tax collection in FY24, setting it at Rs 19.45 lakh crore in the interim Budget presented on February 1. The revised gross tax collection target was pegged at Rs 34.37 lakh crore for FY24.
The provisional figures reveal that gross direct tax collections rose by 18.48 percent to Rs 23.37 lakh crore, while net proceeds after refunds experienced a 17.7 percent increase to Rs 19.58 lakh crore. This reflects not only economic buoyancy but also an increase in income levels among individuals and corporates.
Refunds issued during FY 2023-24 amounted to Rs 3.79 lakh crore, as per the Central Board of Direct Taxes (CBDT). The growth in tax collections is further underscored by the provisional data for corporate tax and personal income tax, which show increases of 13.06 percent and 24.26 percent respectively.
The net corporate tax collection saw a growth of 10.26 percent, while the net personal income tax collection, including Securities Transaction Tax (STT), jumped by an impressive 25.23 percent over the previous fiscal year.
Moreover, refunds have seen a significant rise of 22.74 percent over the previous year, indicating efficient tax administration and processing.
Notably, indirect tax collection for FY24 has also surpassed its revised estimates, buoyed by a record Goods and Services Tax (GST) collection. The Chairman of the Central Board of Indirect Taxes and Customs (CBIC), Sanjay Kumar Agarwal, expressed satisfaction over this achievement in a letter to field officials.
The financial data released showcases India’s strengthening fiscal framework and the government’s adept handling of tax administration, promising a positive outlook for the economy.
Must Watch
