India’s Direct Tax Collections Surge in FY 2023-24
In an impressive financial performance, India’s net direct tax collections for the fiscal year 2023-24 have registered a significant growth of 17.7%, amounting to ₹19.58 lakh crore. This figure not only represents a substantial increase from the ₹16.64 lakh crore collected in the previous fiscal year but also slightly exceeds the revised expectations set by the Finance Ministry.
The initial Budget Estimates (BE) for direct tax revenue were projected at ₹18.23 lakh crore for the year. However, these estimates were later adjusted to ₹19.45 lakh crore in the Revised Estimates (RE). The provisional data indicates that the actual collections have outperformed the BE by 7.40% and the RE by a modest 0.67%.
When looking at the gross tax collections before refunds, there was an 18.48% year-on-year growth, with the total reaching a robust ₹23.37 lakh crore. This growth has been attributed to an uptick in personal income tax (PIT) and securities transaction tax (STT) collections during the final weeks of the fiscal year, although net corporate tax collection saw a slight dip.
Breaking down the figures further, gross PIT collections, inclusive of STT, surged by 24.26%, climbing to ₹12.01 lakh crore from ₹9.67 lakh crore in the previous year. Corporate tax collections also increased by 13.06% in the fiscal year 2023-24. However, after refunds were accounted for, corporate tax receipts exhibited a growth of 10.26% over the prior year’s numbers.
In stark contrast, net receipts from PIT and STT outshone corporate taxes with a remarkable 25.23% increase, totaling ₹10.44 lakh crore compared to ₹8.33 lakh crore in the preceding year. This data underscores a trend where individual taxes and transaction-related levies are growing at a faster pace than corporate tax revenues.
The Finance Ministry’s report highlights the resilience and upward trajectory of India’s tax revenue landscape, signaling a healthy economic environment and effective tax administration measures.
