India’s net direct tax collection increased by 23.51 per cent to Rs 865,117 crore till 16 September 2023, in the ongoing financial year, on the back of higher advance tax collection from corporate, the Ministry of Finance said on Monday.
The net collection figure for the corresponding period in the previous financial year was Rs 700,416 crore, according to provisional figures.
The growth can be attributed to a mix of Corporation Tax (CIT) and Personal Income Tax (PIT), which includes Securities Transaction Tax (STT). The CIT net collection stood at Rs 416,217 crore and PIT net collections stood at Rs 4,47,291 crore, according to data.
The net collections are 47.45 per cent of the full-year budget estimates (BE) of Rs 18.23 lakh crore. In the financial budget 2023-23, the government projected direct tax collection at a little over Rs 18.23 lakh crore, a 9.75 per cent higher than Rs 16.61 lakh crore collected last financial year.
In addition, the provisional number for the gross collection of direct taxes (before accounting of refunds) current fiscal year stands at Rs 987,061 crore, an 18.29 per cent growth against the gross collection of Rs 834,469 crore in the corresponding period of the previous financial year.
The steady growth in tax collection was helped by a 21 per cent growth in advance tax collection. The last date for paying the second installment of advance tax for FY24 was 15 September, 2023.
The advance tax collection stood at Rs 3.55 lakh crore till mid-September, a 21 per cent growth compared to Rs 2.94 lakh crore collected in the corresponding period of the previous fiscal.
As of 16 September, the advance tax collection of Rs 3.55 lakh crore comprises CIT at Rs 2.80 lakh crore and PIT at Rs 74,858 crore.
Refunds of around Rs 1.22 lakh crore have been issued up to 16 September.