Surge in Direct Tax Collections Marks Economic Buoyancy
In a remarkable display of economic resilience, the nation’s direct tax collections have shown a significant uptick. The fiscal year ended March 2024 witnessed a 17.7 percent year-over-year increase in net direct tax collections, amounting to ₹19.58 lakh crore. This figure not only exceeds the initial budget estimates but also surpasses the revised projections substantially.
The bulk of these collections stem from income and corporate taxes, which collectively outperformed the budget estimates by ₹1.35 lakh crore (7.40 percent) and were ₹13,000 crore ahead of the revised estimates. The Central Board of Direct Taxes (CBDT) highlighted this achievement in a recent statement, pointing to the gross direct tax collections for the FY 2023-24 which rose by 18.48 percent to ₹23.37 lakh crore.
After accounting for refunds, the net proceeds stood at ₹19.58 lakh crore, indicating a robust economy and an uptick in income levels for both individuals and corporations. The CBDT noted that refunds totaling ₹3.79 lakh crore were issued during the fiscal year, marking an increase from the previous year’s figures.
The provisional data presents an optimistic picture with gross corporate tax collections increasing by 13.06 percent to ₹11.32 lakh crore, and net corporate tax collections growing by 10.26 percent to ₹9.11 lakh crore compared to the previous fiscal year. Personal income tax collections, inclusive of Securities Transaction Tax (STT), also saw a remarkable rise of 24.26 percent, reaching ₹12.01 lakh crore.
Net personal income tax collections, including STT, surged by 25.23 percent to ₹10.44 lakh crore, underscoring the growth trajectory of the nation’s economy. The increase in refunds issued also reflects the government’s commitment to timely and efficient tax administration.
The tax collections for this fiscal year not only demonstrate the country’s economic vitality but also provide a cushion for future fiscal planning and development initiatives.
Published on April 21, 2024
