India’s Net Direct Tax Collections Exceed Estimates
In a remarkable fiscal performance, India’s net direct tax collections for the year ended March 2024 have soared to Rs 19.58 crore, marking an impressive 17.7 percent increase from the previous year. This surge has not only surpassed the initial budget estimates but also the revised projections, according to the latest statement from the tax department.
The robust collections are indicative of a thriving economic environment and an uptick in the income levels of both individuals and corporations. The fiscal year 2023-24 saw income and corporate taxes, which constitute a significant portion of direct taxes, exceed the budget’s expectations by Rs 1.35 lakh crore (7.40 percent) and the revised estimates by Rs 13,000 crore.
While the gross direct tax collections for the fiscal year 2023-24 experienced an 18.48 percent rise to Rs 23.37 lakh crore, the net proceeds after refunds witnessed a parallel growth trajectory. The Central Board of Direct Taxes (CBDT) highlighted that refunds totaling Rs 3.79 lakh crore were disbursed during the fiscal year, marking a substantial increase from the preceding year.
The provisional figures for gross corporate tax collection showed a 13.06 percent increase to Rs 11.32 lakh crore, while the net corporate tax collection grew by 10.26 percent to Rs 9.11 lakh crore. Personal Income Tax, inclusive of Securities Transaction Tax (STT), also reflected a significant uptick with a 24.26 percent growth in gross collection and a 25.23 percent increase in net collection.
The statement from the CBDT further detailed that the provisional direct tax collections, net of refunds, not only achieved but exceeded the budgetary and revised estimates for the fiscal year, underscoring the fiscal prudence and economic momentum of the nation.
This financial accomplishment is a testament to India’s expanding tax base and its resilient economic framework, setting an optimistic tone for the country’s fiscal health and governance.
